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Mealey's Trade Secret

May 16, 2019
Judge Holds Trade Secret, UCL Claims Could Succeed, Grants Injunction

SAN DIEGO — After holding that internet lead generation companies will likely succeed on the merits of their claims for misappropriation of trade secrets and violation of California’s unfair competition law (UCL), a California federal judge on May 13 granted their request for a preliminary injunction enjoining competitors from using their trade secrets (Zeetogroup, LLC, et al. v. Nicholas Fiorentino, et al., No. 19-CV-458, S.D. Calif., 2019 U.S. Dist. LEXIS 80648).
May 15, 2019
Washington Appellate Panel Upholds Denial Of Attorney Fees In Trade Secret Suit

SEATTLE — A Washington appeals panel on May 13 ruled that a state trial court did not abuse its discretion in denying an award of attorney fees to a company in a breach of contract and trade secret misappropriation lawsuit because the defendant failed to meet its burden of segregating the fees to request only fees associated with the added burden of litigating the action as an out-of-state defendant under Washington’s long-arm statute, as required under the appellate panel’s previous ruling (Bulk FR8 v. Matthew Schuler, et al., No. 77554-5-I, Wash. App., Div. 1, 2019 Wash App. LEXIS 1228).
May 13, 2019
Federal Judge Partially Grants Franchisor’s Motion For Preliminary Injunction

LOUISVILLE, Ky. — A Kentucky federal judge on May 9 held that a franchisor has justified a preliminary injunction on its Lanham Act claims, further finding that that franchisor has shown that a preliminary injunction is proper on its claim under the Defend Trade Secrets Act (DTSA) but limited the scope of that injunction compared to what the franchisor sought in its motion (JTH Tax, Inc., et al. v. Freedom Tax, Inc., et al., No. 19-00085, W.D. Ky., 2019 U.S. Dist. LEXIS 78532).
May 10, 2019
Temporary Restraining Order In Trade Secret Lawsuit Denied

DALLAS — A federal judge in Texas on May 9 ruled that a provider of life insurance and annuities software systems has failed to show that there is a substantial likelihood it will succeed on the merits of its claims for trade secret misappropriation in violation of state and federal trade secret laws because it has failed to adequately show that the defendant misappropriated its trade secrets for its proprietary software system (Computer Science Corp. v. Tata Consultancy Services Ltd., et al., No. 19-0970, N.D. Texas, 2019 U.S. Dist. LEXIS 78766).
May 10, 2019
Dismissal Of Trade Secret Misappropriation Claim Affirmed On Appeal

NEW YORK — A Second Circuit U.S. Court of Appeals panel on May 8 ruled that a federal district court did not err in dismissing a company’s trade secret misappropriation claim against its former business partner and a competitor because the claim was time-barred by the applicable statute of limitations (Universal Instruments Corp. v. Micro Systems Engineering Inc., et al., No. 17-2748, 2nd Cir., 2019 U.S. App. LEXIS 13797).
May 09, 2019
Denial Of Attorney Fees In Trade Secrets Dispute Affirmed On Appeal

RICHMOND, Va. — In an unpublished opinion, a Fourth Circuit U.S. Court of Appeals panel on May 8 ruled that a federal district court did not abuse its discretion in denying the defendants’ motion for an award of attorney fees in a trade secret misappropriation lawsuit because those claims were brought in good faith (Akira Technologies Inc. v. Conceptant Inc., et al., No. 18-1655, 4th Cir., 2019 U.S. App. LEXIS 13769).
May 08, 2019
Judge: Bankruptcy Court’s Value Estimation On Trade Secret Claim Proper

NEW YORK — A federal judge in New York on May 6 ruled that a federal bankruptcy court did not err in estimating the value of a creditor’s trade secret, contract and fraud claims against a debtor, rejecting each of the creditor’s claims on appeal (In re Avaya Inc., et al., No. 18-6312, S.D. N.Y., 2019 U.S. Dist. LEXIS 76250).
May 06, 2019
Jury Awards Company $6.5M In Damages In Trade Secrets Dispute

PROVIDENCE, R.I. — A federal jury in Rhode Island on May 3 awarded an Italian company $6.5 million in damages after finding that its former employee and competitor misappropriated certain of its trade secret information for its erythrocyte sedimentation rate (ESR) analyzer technology (Alifax Holding SpA v. Alcor Scientific Inc., et al., No. 14-440, D. R.I.).
May 06, 2019
Magistrate Judge: Counterclaims In Trade Secret Suit Timely Filed

DENVER — A federal magistrate judge in Colorado on May 3 ruled that a former employee of a live music and entertainment company properly asserted his counterclaims against his former employer in his answer to the company’s amended complaint in a trade secret misappropriation lawsuit under Federal Rules of Civil Procedure 16(b) and 15(a) (KAABOOWorks Services LLC v. Brian Pilsl, No. 17-2530, D. Colo.).
May 03, 2019
GE Engineer, Brother-In-Law Charged With Trade Secrets Theft

SYRACUSE, N.Y. — A General Electric Corp. (GE) engineer and his Chinese national brother-in-law were indicted in New York federal court on April 18 on charges that they conspired to steal GE’s trade secrets for its steam turbine engine technology and committed economic espionage (United States of America v. Zheng Xiaoqing, et al., No. 19-cr-156, N.D. N.Y.).
May 03, 2019
DTSA Claim In Trade Secrets Dispute Survives Motion To Dismiss

SAN FRANCISCO — A semiconductor producer has sufficiently pleaded its claim for misappropriation of trade secrets in violation of the Defend Trade Secrets Act (DTSA) against a Taiwanese Dynamic Random Access Memory (DRAM) products manufacturer by alleging that the defendant misappropriated its DRAM product trade secrets in patent applications and using those trade secrets in its manufacturing activities in China, a federal judge in California ruled May 2 (Micron Technology Inc. v. United Microelectronics Corp., et al., No. 17-6932, N.D. Calif., 2019 U.S. Dist. LEXIS 74527).
May 02, 2019
State, Federal Trade Secret Law Claims Dismissed As Time-Barred

SAN JOSE, Calif. — A federal judge in California on April 30 ruled that a technology company’s theory of misappropriation by acquisition in stating its claims for violation of state and federal trade secret laws against its Korean competitor is time-barred by the three-year statute of limitations (Alta Devices Inc. v. LG Electronics Inc., No. 18-0404, N.D. Calif.).
May 02, 2019
Trade Secrets Suit Remanded To State Court Based On Lack Of Federal Jurisdiction

KANSAS CITY, Kan. — A federal judge in Kansas on April 30 ruled that federal jurisdiction in a trade secret misappropriation lawsuit does not exist because a financial services company failed to sufficiently show that its state court petition invokes a federal question or otherwise “invoke[s] federal jurisdiction in any respect” (Financial Engines LLC v. Eric Susi, et al., No. 18-2619, D. Kan., 2019 U.S. Dist. LEXIS 73109).
May 01, 2019
Motion To Dismiss On Jurisdictional Grounds In Trade Secrets Dispute Denied

NEW ORLEANS — A federal judge in Louisiana on April 29 ruled that although a company has failed to show that the court has general jurisdiction over claims in a trade secret misappropriation lawsuit against the company’s former business partner, specific jurisdiction exists and, thus, dismissal is unwarranted (Opti-Com Manufacturing Network LLC v. Champion Fiberglass Inc., No. 18-9647, E.D. La., 2019 U.S. Dist. LEXIS 71659).
May 01, 2019
LG Sues South Korean Competitor For Theft Of Battery Trade Secrets

WILMINGTON, Del. — Technology company LG Chem Ltd. (LGC) and its subsidiary sued a South Korean competitor and its American subsidiary in Delaware federal court on April 29, alleging that the defendants stole its confidential and proprietary trade secret information for the development of its electronic vehicle (EV) batteries in violation of state and federal trade secrets law (LG Chem Ltd., et al. v. SK Innovation Co. Ltd., et al., No. 19-776, D. Del.).
April 29, 2019
Judge Denies Dismissal Bids In Trade Secrets Misappropriation Dispute

KANSAS CITY, Mo. — A federal judge in Missouri on April 24 ruled that an agricultural media company has sufficiently shown that its former employee and a competitor misappropriated its confidential information in violation of state and federal trade secrets law by pleading that the former employee downloaded more than 11,000 files containing the media company’s trade secrets (Farm Journal Inc. v. Gregory Johnson, et al., No. 19-0095, W.D. Mo., 2019 U.S. Dist. LEXIS 69374).
April 25, 2019
Panel Declines To Redact Preliminary Injunction Ruling In Trade Secrets Dispute

PHILADELPHIA — A Third Circuit U.S. Court of Appeals panel on April 19 declined to redact portions of its April 3 ruling in which it found that although a federal district court did not err in granting a preliminary injunction in a trade secret misappropriation lawsuit request against former employees and a direct competitor, remand is necessary so that further fact-finding on the proper length of the injunction can be conducted (Par Pharmaceutical Inc., et al. v. QuVa Pharma Inc., et al., No. 18-2177, 3rd Cir., 2019 U.S. App. LEXIS 11933).
April 23, 2019
Several Claims Trimmed In Tech Company’s Trade Secrets Misappropriation Suit

FORT LAUDERDALE, Fla. — A technology company and its CEO failed to sufficiently state their state and federal trade secret law claims against former business partners because they did not allege that any reasonable steps were taken by the plaintiffs to restrict the business partners’ access or use of protected data, a federal judge in Florida ruled April 19 (Armen A. Temurian, et al. v. Phillip A. Piccolo Jr., et al., No. 18-62737, S.D. Fla., 2019 U.S. Dist. LEXIS 67469).
April 22, 2019
Confidentiality, Harm Debated In Supreme Court Arguments Over FOIA Exemption

WASHINGTON, D.C. — The U.S. government, a newspaper and a retailer trade association offered arguments about the necessity of demonstrating likely harm from the disclosure of information under the Freedom of Information Act (FOIA) before the U.S. Supreme Court on April 22, disputing whether assurances of confidentiality and assertions of trade secrets are sufficient to invoke an exemption to the act (Food Marketing Institute v. Argus Leader Media, No. 18-481, U.S. Sup.).
April 19, 2019
Judge Denies Request For Leave To Amend In Trade Secrets Dispute

LOUISVILLE, Ky. — Reconsideration of a federal district court’s order denying a motion filed by a manufacturer of coal washing water recycling machinery and equipment for leave to amend its complaint in a trade secret misappropriation and breach of contract lawsuit is unwarranted because the plaintiff has failed to allege any newly discovered evidence that would support such a ruling, a federal judge in Kentucky ruled April 18 (Phoenix Process Equipment Co. v. Capital Equipment & Trading Corp., et al., No. 16-0024, W.D. Ky., 2019 U.S. Dist. LEXIS 66165).
April 19, 2019
Company: Competitor Used Stock Auction To Improperly Acquire Trade Secrets

NEW YORK — A company sued its competitor in the translation services industry in New York federal court on April 11, alleging that the competitor acquired its trade secret “under false pretenses” and misappropriated those trade secrets in violation of the Defend Trade Secrets Act (DTSA) and New York common law in an effort to compete with the company (TransPerfect Global Inc. v. Lionbridge Technologies Inc., et al., No. 19-3283, S.D. N.Y.).
April 19, 2019
Judge Partially Dismisses DTSA Claim In Trade Secret Misappropriation Suit

NEW YORK — A federal judge in New York on April 16 held that an insurance company and its parent holding company have sufficiently stated a plausible claim for violation of the Defend Trade Secrets Act (DTSA) against Marsh USA Inc. in arguing that Marsh allegedly used the company’s trade secrets to enter into an agreement with The Boeing Co. for an airline finance insurance consortium (AFIC) similar to the one the insurance company had developed (Xavian Insurance Co., et al v. Marsh & McLennan Companies Inc., et al., No. 18-8273, S.D. N.Y., 2019 U.S. Dist. LEXIS 65067).
April 19, 2019
Motorola Denied Expanded Discovery In 2-Way Radio Trade Secret, Copyright Suit

CHICAGO — Stating that there has already been “enough discovery . . . to choke a horse” in a dispute over two-way radio technology between Motorola Solutions Inc. and a Chinese firm, an Illinois federal magistrate judge on April 15 denied Motorola’s motion to compel discovery related to a product that he found was outside the scope of the trade secret and copyright claims at issue (Motorola Solutions Inc. v. Hytera Communications Corp., et al., No. 1:17-cv-01973, N.D. Ill.; 20192019 U.S. Dist. LEXIS 64005).
April 18, 2019
Trade Secret, Breach Of Contract Dispute Transferred To New York Federal Court

BALTIMORE — A federal judge in Maryland on April 16 ruled that a webinar and conferencing services provider’s breach of contract and trade secret misappropriation lawsuit against its former employee must be heard in New York federal court under the first-to-file rule (Intellor Group Inc. v. Brian J. Cicero, No. 19-0010, D. Md., 2019 U.S. Dist. LEXIS 62541).
April 17, 2019
Breach Of Contract, Trade Secret Misappropriation Claims Survive Dismissal Bid

TAMPA, Fla. — A federal judge in Florida on April 15 ruled that a research and development company has adequately stated its trade secret misappropriation claims against the American subsidiary of a Japanese developer of “chemical products and technologies,” rejecting the subsidiary’s argument that the company failed to plead the claim with the necessary particularity (Developmental Technologies LLC v. Mitsui Chemicals Inc., et al., No. 18-1582, M.D. Fla.).