Trade Secrets

In China: Is Your Business Information Qualified for Protection in Trade Secrets Litigation?

Recently, China and the U.S. have reached some meaningful commitments on minimizing trade secrets misappropriation and protecting intellectual property during their Joint Commission on Commerce and Trade.The commitments represent a step forward for trade secrets protection between the U.S. and China. Many U.S. companies, however, still complain that they are burdened by intricate laws and litigation regarding trade secret misappropriation in China. Here’s a primer on Chinese trade secrets law, which is often jurisdiction-specific. READ MORE

Trade Secrets Unwrapped: Packaging Materials Case Demonstrates The Importance Of Keeping Confidential Information Sealed Shut

There are many ways to gain trade secret protection, but also many ways to lose it. As the recent motion to dismiss ruling in Fleetwood Packaging v. Hein from the Northern District of Illinois illustrates, how a company vacuum packs its confidential information can make all the difference between preserving it and watching it get spoiled by a competitor. READ MORE

June 29, 2015 Amendments to Article 183 of the Russian Criminal Code: Increased Liability for Disclosure of Trade Secrets in Russia

While Russia has long protected trade secrets through the Federal Law on Information, Information Technologies and Information Protection and the Trade Secret Law, amendments to the Russian Criminal Code on June 29, 2015 now substantially increase liability for disclosure of trade secrets. Illegal disclosure of trade secrets may now result in more serious consequences, including increased fines equal to as much as three years’ wages for disclosure. READ MORE

Think Before You Tack CFAA Claims on to Your Trade Secret Misappropriation Case

Before you include a Computer Fraud and Abuse Act (“CFAA”) claim in a trade secret case, consider carefully: was the data acquired through “unauthorized access” or was it just misused by the defendants? If it was properly accessed (but later misused), your CFAA claim, and the federal question jurisdiction that comes with it, is in jeopardy. In SunPower Corp. v. SunEdison, Inc., Judge Orrick of the Northern District of California recently dismissed the plaintiff’s CFAA claim because the plaintiff failed to allege that the data was accessed without authorization, only that it was later misused.  Because the CFAA claim provided the basis for federal jurisdiction, Judge Orrick indicated that he would dismiss the entire case and not exercise pendent jurisdiction over the remaining thirteen state claims if the CFAA claim could not be properly amended. READ MORE

Defend Trade Secrets Act of 2015 Faces Criticism 2.0

On August 28, 2015, TSW continued its coverage of the 2015 Defend Trade Secrets Act (“2015 DTSA”), introduced in both the House and Senate on July 28, 2015, with its comparison of the 2015 DTSA to last year’s failed 2014 House Bill. In today’s post, TSW continues with its extensive coverage of the 2015 DTSA, detailing both the criticisms it is facing and the progress it has made in Congress. READ MORE

U.S. Considers Sanctions Against China For Cyber Hacking And Trade Secret Misappropriation

You may have missed it this past weekend, but reports indicate the United States is considering sanctioning Chinese companies and individuals who have benefited from their government’s alleged cyber hacking of U.S. trade secrets. The Washington Post, quoting unidentified officials, states the “unprecedented” package of sanctions is part of a larger strategy to expand the “administration’s public response to the rising wave of cyber-economic espionage initiated by Chinese hackers” and to confront malicious cyber actors. READ MORE

A Preview of the CFAA Arguments in United States v. Nosal, Part II: Could “Phishing” be a Factor?

Oral arguments for the next round in United States v. Nosal have been set for October 20, 2015 at the Ninth Circuit in San Francisco.  So we figured it may be a good time to review both sides’ arguments related to the Computer Fraud and Abuse Act. After doing so, it seems to us that one topic not given any consideration in the briefs, but that may play a role during oral argument is the phenomenon known as phishing schemes, and how such schemes might be compared and contrasted with the scheme alleged in this case. READ MORE

A Voice from China: Unraveling the Different Standards for Civil and Criminal Misappropriation of Trade Secrets

In China, victims of trade secret misappropriation suffering losses over RMB 500,000 are entitled to file a civil action and may also report the case to public security authorities to initiate a criminal investigation. (For more of our coverage about trade secrets protection in China, click here). When both criminal and civil actions are pending, a Chinese criminal court tends to use the civil decision, if available, as the basis of proving the crime of trade secret misappropriation as long as the damages requirement is met. In Maige Kunci Co., Ltd. v. Suzhou Ruitai New Metal Co., Ltd. (regarded as one of the top 10 Chinese IP cases in 2014) READ MORE

Once More, With Feeling! Congress Swings for the Fences with the Defend Trade Secrets Act of 2015

On July 28, broad bipartisan support ushered the “Defend Trade Secrets Act of 2015” onto the floor of both the House and Senate. This DTSA treads the well-worn path of many similar (and, to date, hapless) bills that fruitlessly preceded it. TSW has exhaustively covered prior attempts, aptly titling our first post “Pols Gone Wild: Congress Discovers Trade Secret Theft and Cybersecurity Are Problems; We Sort Through the Explosion of Legislation”—chart and all. READ MORE