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Mealey's Trade Secret

October 07, 2019
High Court Declines Review Of Terminating Sanctions Order In Trade Secret Suit

WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 7 declined to review a Ninth Circuit U.S. Court of Appeals ruling upholding the issuance of a punitive sua sponte terminating sanctions order (TSO) in a trade secret misappropriation lawsuit (Loop AI Labs Inc., et al. v. Anna Gatti, et al., No. 19-59, U.S. Sup.).
October 03, 2019
Panel Overturns Dismissal Of Some Claims In Trade Secret Misappropriation Suit

NEW YORK — A Second Circuit U.S. Court of Appeals panel on Oct. 2 said a federal judge erred in ruling that a company failed to sufficiently plead that confidential and proprietary information that a former employee of its exclusive distributor allegedly misappropriated in an attempt to divert customers away from the company and to a rival was, in fact, secret (Continental Industries Group Inc. v. Mehmet Autunitic, No. 18-1239, 2nd Cir., 2019 U.S. App. LEXIS 29576).
October 03, 2019
Trade Secret Dispute Over Alleged Contract Breach Remanded To State Court

MIAMI — A federal judge in Florida on Oct. 2 ruled that remand of a breach of contract and misappropriation lawsuit to state court is necessary because the defendant in the action failed to show that the amount in controversy exceeds the statutory requirement for removal (Mi Pulpe LLC v. Mexilink Inc., No. 19-23529, S.D. Fla., 2019 U.S. Dist. LEXIS 170751).
October 03, 2019
Fracking Companies Allege Trade Secret Misappropriation And Patent Infringement

MIDLAND, Texas — Two hydraulic fracturing services companies on Sept. 30 sued a competitor that provides similar fracking services, contending that it is liable for patent infringement and misappropriation of trade secrets (Coil Chem LLC, et al. v. Durachem Production Company, et al., No. 19-225, W.D. Texas).
October 02, 2019
State, Federal Trade Secret Misappropriation Claims Found To Be Time-Barred

BAY CITY, Mich. — A federal judge in Michigan on Sept. 30 ruled that dismissal of state and federal trade secret law claims is necessary because a designer and manufacturer of equipment for “manufacturing applications” failed to bring those claims within the three-year statute of limitations (B&P Littleford LLC v. Prescott Machinery LLC, et al., No. 18-11425, E.D. Mich., 2019 U.S. Dist. LEXIS 168196).
October 01, 2019
Insurer Fends Off Motion To Dismiss State, Federal Trade Secret Law Claims

CHICAGO — A federal judge in Illinois on Sept. 30 ruled that an insurer has sufficiently alleged that Boeing Co. and its subsidiary used the insurer’s confidential and proprietary trade secret information in violation of state and federal trade secret laws for its aircraft purchase insurance business model in the creation of its own insurer with another insurance broker (Xavian Insurance Co. v. Boeing Capital Corp., No. 18-6222, N.D. Ill., 2019 U.S. Dist. LEXIS 167665).
September 30, 2019
DTSA Claim In Trade Secrets Lawsuit Over Licensing Contract Dismissed

NEW YORK — A provider of software services for the management of structured finance and derivative portfolios failed to sufficiently plead that its former client violated provisions of the Defend Trade Secrets Act (DTSA) by improperly using its proprietary swap valuation software, a federal judge in New York ruled Sept. 26 (Principia Partners LLC v. Swap Financial Group LLC, No. 18-7998, S.D. N.Y., 2019 U.S. Dist. LEXIS 16557).
September 26, 2019
Tech Company’s Claims In Trade Secrets Dispute With Rival Survive Dismissal Bid

SALT LAKE CITY — A federal judge in Utah on Sept. 24 ruled that dismissal of a technology company’s state and federal trade secret law claims is not warranted because the company has sufficiently shown that those claims are not time-barred by the three-year statute of limitations (Ivanti Inc. v. StayLinked Corp., No. 19-0075, D. Utah, 2019 U.S. Dist. LEXIS 164574).
September 26, 2019
State, Federal Trade Secret Law Claims Survive Summary Judgment Bid

BALTIMORE — A federal judge in Maryland on Sept. 20 ruled that summary judgment on state and federal trade secret law claims in an employment dispute is not warranted because the defendant conceded that one of two trade secrets she is alleged to have misappropriated meets the necessary statutory definition of a trade secret (Maryland Physician’s Edge LLC v. Nancy Behram, M.D., No. 17-2756, D. Md., 2019 U.S. Dist. LEXIS 163536).
September 25, 2019
DTSA Claim Dismissed For Failure To Plead ‘Interstate Commerce’ Element

HONOLULU — A federal judge in Hawaii on Sept. 23 ruled that a nonprofit organization that provides hospice care to residents of Hawaii failed to sufficiently plead that its alleged trade secret “relates to a product or service used in, or intended for use in, interstate commerce” as required pursuant to the Defend Trade Secrets Act (DTSA) (Islands Hospice Inc. Michael Duick, et al., No. 19-0202, D. Hawaii, 2019 U.S. Dist. LEXIS 162416).
September 20, 2019
Panel: Counterclaims Properly Dismissed As Superseded By Trade Secret Law

SAN FRANCISCO — A federal district court did not abuse it’s discretion in dismissing a medical technology company’s counterclaims for unfair business practices and unjust enrichment against its competitor in the health care professional clothing industry without leave to amend because those counterclaims are superseded by California’s uniform trade secrets law, a Ninth Circuit U.S. Court of Appeals panel ruled Sept. 16 (Strategic Partners Inc. v. Vestagen Protective Technologies Inc., Nos. 17-56789, 17-56897 and 18-55156, 9th Cir., 2019 U.S. App. LEXIS 27819).
September 20, 2019
Battery Technology Company Sues Chinese Competitor In Trade Secret Dispute

SAN JOSE, Calif. — A manufacturer of new battery technologies sued its Chinese competitor on Sept. 16 in California federal court, alleging that the competitor engaged in a scheme to poach one of the manufacturer’s key employees and misappropriate the company’s confidential and trade secret information for its lithium-ion battery separators in violation of state and federal trade secret laws (Celgard LLC v. Shenzhen Senior Technology Material Co. Ltd. [US] Research Institute, et al., No. 19-5784, N.D. Calif.).
September 20, 2019
High Court Review Of Dischargeability Ruling In Trade Secret Suit Sought

WASHINGTON, D.C. — The U.S. Supreme Court should grant review of a federal appellate court’s remand of a bankruptcy court ruling to determine whether a company’s former employee intended to injure his former employer when he misappropriated the company’s trade secrets for the benefit of a competitor in determining whether a trade secrets misappropriation damages judgment against him may be discharged as part of a Chapter 7 bankruptcy proceeding, the company argues in a Sept. 3 petition for writ of certiorari (TKC Aerospace Inc. v. Charles Taylor Muhs, No. 19-293, U.S. Sup.).
September 20, 2019
Coin Dealer Hits Competitor With Trade Secret Misappropriation Suit

LOS ANGELES — An authorized dealer of rare coins and currency sued another dealer and a former employee on Sept. 11 in California state court, alleging that the defendants misappropriated the dealer’s confidential and proprietary inventory software and stole more than $450,000 in inventory (Westford Rare Coins LLC v. Vadim Polyak, et al., No. 19STCV32089, Calif. Super., Los Angeles Co.).
September 20, 2019
Post-Trial Motions In Long-Running Trade Secret Suit Granted In Part

PROVIDENCE, R.I. — A federal judge in Rhode Island on Sept. 5 granted in part and denied in part two post-trial motions in a trade secret misappropriation lawsuit brought by an Italian company against its former employee and its competitor, ruling that the plaintiff failed to introduce sufficient evidence of a protectable trade secret pursuant to the state trade secrets law (Alifax Holding SpA v. Alcor Scientific Inc., et al., No. 14-440, D. R.I., 2019 U.S. Dist. LEXIS 150856).
September 18, 2019
Husband, Wife Charged With Theft Of Trade Secrets From Children’s Hospital

CINCINNATI — A husband and wife conspired to steal confidential and trade secret information from the Nationwide Children’s Hospital pertaining to the hospital’s exosome and exosome isolation research and provide the information to a company that performs similar work in China, federal prosecutors allege in a criminal indictment unsealed Sept. 16 in Ohio federal court (United States of America v. Yu Zhou, et al., No. 19-cr-163, S.D. Ohio).
September 18, 2019
State, Federal Trade Secret Law Claims Survive Dismissal Attempt

NASHVILLE, Tenn. — A federal judge in Tennessee on Sept. 13 ruled that a seller of clear orthodontic aligners has sufficiently stated allegations in support of its claims for misappropriation of trade secrets in violation of state and federal law against the former employee of its business partner (SDC Financial LLC, et al. v. Martin Bremer, et al., No. 19-525, M.D. Tenn., 2019 U.S. Dist. LEXIS 156806).
September 18, 2019
District Court Lacks Jurisdiction Over Claim In Trade Secret Suit, Judge Rules

CINCINNATI — A federal judge in Ohio on Sept. 16 ruled that a freight brokerage services provider has failed to sufficiently show that a federal district court has personal jurisdiction over the provider’s claims against its former employee in a trade secret misappropriation lawsuit (Total Quality Logistics LLC v. Tarpon Transportation Services Inc., No. 18-353, S.D. Ohio, 2019 U.S. Dist. LEXIS 157672).
September 16, 2019
Trade Secret Misappropriation Law Counterclaims Survive Dismissal Bid

SAN FRANCISCO — A federal judge in California on Sept. 13 denied a software company’s motion to dismiss counterclaims for violation of state and federal trade secrets laws filed by its competitor and several former employees, rejecting the company’s assertion that the trade secret counterclaims fail for the same reasons that its trade secret misappropriation claims were found to be deficient in a previous ruling (Vendavo Inc. v. Price f(x) AG, et al., No. 17-6930, N.D. Calif., 2019 U.S. Dist. LEXIS 157062).
September 13, 2019
Judge Denies Dismissal Of Added Claims In Trade Secrets Suit Over Sales Agreement

MEDFORD, Ore. — A federal judge in Oregon on Sept. 10 ruled that dismissal of claims added in an amended complaint filed by Rust-Oleum Corp. in its trade secret misappropriation lawsuit against its former business partner is not appropriate because Rust-Oleum provided sufficient factual allegations to support the claims (Rust-Oleum Corp. v. NIC Industries Inc., No. 18-1655, D. Ore., 2019 U.S. Dist. LEXIS 154998).
September 09, 2019
Claims In Trade Secrets Suit Dismissed As Preempted By Alabama Statute

MOBILE, Ala. — A federal judge in Alabama on Sept. 6 ruled that dismissal of several claims in a trade secret misappropriation lawsuit against a contactor and one of its employees is warranted because those claims are preempted by Alabama’s trade secret law (Arkema Inc., et al. v. Emerson Process Management LLP, et al., No. 19-296, S.D. Ala., 2019 U.S. Dist. LEXIS 151783).
September 09, 2019
Reconsideration Of Dismissal Of State, Federal Trade Secret Law Claims Denied

FRESNO, Calif. — A federal judge in California on Sept. 5 denied a provider of water treatment solutions for agriculture irrigation’s motion for reconsideration of a prior ruling dismissing its state and federal trade secret misappropriation law claims, holding that a “procedural problem” exists with the plaintiff’s motion (Deerpoint Group Inc. v. Agrigenix LLC, No. 18-536, E.D. Calif., 2019 U.S. Dist. LEXIS 15163).
September 05, 2019
Parties Debate Necessity Of Sanctions Against Attorney In Trade Secret Suit

SAN FRANCISCO — A federal judge in California should deny a request made by defendants in trade secret misappropriation lawsuit to issue sanctions against plaintiff’s counsel for sending allegedly threatening communications because the attorney who sent the letters did not commit any violations of ethical rules as the defendants allege, the plaintiff claims in an Aug. 30 opposition brief filed in California federal court (Citcon USA LLC v. RiverPay Inc., et al., No. 18-2585, N.D. Calif.).
September 04, 2019
Injunctive Relief Granted In Company’s Trade Secret Suit Against Former Employee

NASHVILLE, Tenn. — Describing a trade secret misappropriation lawsuit defendant’s testimony as “unbelievable, self-serving, and evasive,” a federal judge in Tennessee on Aug. 29 ruled that a supplier of raw pigment materials to the plastics industry has shown a substantial likelihood of success on its claims that the defendant violated state and federal trade secret laws (Uniform Color Co. v. Shaun Langley, No. 19-636, M.D. Tenn., 2019 U.S. Dist. LEXIS 149066).
September 03, 2019
Judge: Defendant In Trade Secrets Dispute Subject To Personal Jurisdiction

SHERMAN, Texas — A defendant in a trade secret misappropriation and breach of contract lawsuit filed by his former employer did not waive his objection to personal jurisdiction but is subject to such jurisdiction in Texas for a majority of the claims brought against him, a federal judge in Texas ruled Aug. 29 (McAfee LLC v. Jennifer E. Kinney, et al., No. 19-0463, E.D. Texas, 2019 U.S. Dist. LEXIS 146929).