Trade Secret Misappropriation

This Trade Secret Suit Doesn’t Infringe on Free Speech

Can defendants use anti-SLAPP statutes to dismiss meritorious trade secrets misappropriation lawsuits?  A recent decision by the Fifth District Court of Appeals in Dallas suggests not.

Numerous states have passed some form of anti-SLAPP legislation to prevent parties from using litigation as a tool to silence individuals from exercising their First Amendment rights.  Texas, in particular, enacted the Texas Citizens Participation Act (“TCPA”) back in 2011 to “protect citizens from retaliatory lawsuits that seek to silence or intimidate them for exercising their rights in connection with matters of public concern.”  The TCPA provides an avenue for individuals to summarily dispose of such lawsuits designed to chill their First Amendment rights. READ MORE

The $740 Million Jury Question: Massive Trade Secrets Award Overturned Because of Erroneous “Improper Means” Instruction

The right to a jury trial is one of the most important features of modern trade secrets law.  But as a recently issued Order from the Texas Fourth Court of Appeals (“Court of Appeals”) illustrates, the jury trial right is only as good as the jury instructions that execute that right.   READ MORE

Commentary Sheds Light on Appropriate Level of Detail for Plaintiffs in Misappropriation Cases

This May was the fourth anniversary of the Defend Trade Secrets Act (DTSA), signed into law by President Obama on May 11, 2016. The DTSA does not preempt state laws and plaintiffs can still bring cases under their state’s trade secrets law, but the DTSA has played a big role in the increased number of trade secret cases in recent years. According to Lex Machina’s Trade Secret Litigation report, which covered federal district court data from 2010 to 2019, the DTSA caused a 30% increase in trade secret case filings between 2015 and 2017 and those numbers have remained steady. READ MORE

If trade secrets misappropriation claims can be brought by non-owners, what should companies do to manage risk?

Last week, we examined the recent Third Circuit decision in Advanced Fluid Systems, which held that a trade secrets plaintiff did not need to be an owner or a licensee of the alleged trade secrets to bring a state law misappropriation claim under Pennsylvania’s UTSA—all that was required was that the plaintiff had “lawful possession” of the trade secrets. In so holding, the Third Circuit added to the weight of the Fourth Circuit’s similar analysis of Maryland’s UTSA in DTM Research, L.L.C. v. AT&T Corp., 245 F.3d 327 (4th Cir. 2001).

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Spoliation by Self-Driving Startup Leads to Terminating Sanctions

During the course of a trade secrets litigation, neglecting to preserve electronically stored information (“ESI”) may result in a finding of spoliation. In a recent Order issued by Judge Edward Davila (United States District Court, Northern District of California), two startups in the autonomous vehicle industry, WeRide and AllRide, learned that failure to adequately preserve ESI can also lead to terminating sanctions. READ MORE