Two apologies are in order. First, I have been on vacation, and swamped with a preliminary injunction and upcoming trial, and, as a result, I have not been able to keep up with the blog in the past two weeks. Second, as some of you may have noticed, we have had some delayed postings and graphics issues (including the absence of today’s photo) and I apologize for any inconvenience. We have recently switched to a new web design and hosting company to provide a better user experience and have been working through some issues. Thanks for your patience during this transition. Now, here are the noteworthy posts of the past week and some catch-up on posts from the past couple of weeks: Trade Secret and Non-Compete Cases, Posts and Articles:
  • In an article entitled, “Litigation Over Noncompete Clauses Is Rising,” by Ruth Simon and Angus Loten for The Wall Street Journal, the increasing use and litigation over non-competes is questioned for its impact on startups and small companies. Fellow trade secrets blogger and podcaster Russell Beck is quoted in the article (a special kudos to Russell).
  • In a similar vein, “Tide turning against use of noncompete agreements in Mass.,” reports Don Siefert for techflash.
  • In “U.S. Senators Propose Legislation To Strengthen Federal Criminal Trade Secret Laws,” Robert Milligan writes about recent proposed amendments to the Economic Espionage Act for Seyfarth Shaw’s Trading Secrets Blog.
  • For the latest decision addressing whether a trade secret claimant should be found to have brought an action in bad faith, see Kenneth Vanko’s recent posts here and here on a case he recently litigated before the U.S. Court of Appeals for the Seventh Circuit, Tradesman Int’l v. John Black. 
  • In “Printing Hard Copies of Stolen Source Code: The Difference Between Freedom and Incarceration in the Second Circuit,” for Orrick’s Trade Secrets Watch, Eulanda Skyles tries to divine what the U.S. Court of Appeals for the Second Circuit was thinking when it recently affirmed the conviction of Societe Generale trader Samarth Agrawal under the Economic Espionage Act (EEA). Good luck. Frankly, I thought the Court’s efforts to distinguish its ruling in U.S. v. Aleynikov bordered on nonsensical and can largely be explained by the fact that it knew its decision was wildly unpopular and led to an amendment to the EEA to avoid any similar rulings in the future.
  • “Employment Agreement Mandating Arbitration With Exclusion To Seek Equitable Relief From Court For Non-Compete Violations Found Unconscionable” reports Paul Freehling for Seyfarth Shaw’s Trading Secrets Blog. Paul has another interesting post, “Georgia Court Rules That Non-Compete Does Not Bind Seller’s Agents,” addressing an issue that frequently arises.
  • “Judge Won’t Toss $100M Trade Secret Suit Against Akorn,” reports Law360.
  • It’s not just for the feds anymore, as state attorney generals are increasingly bringing trade secret enforcement actions, as reported by Mark Mermelstein, Melanie Philips and Ryan C. Micallef in, “AGs to the Front Lines: State Attorneys General Begin Wielding Unfair Competition Laws against Foreign IP Thieves,” for Orrick’s Trade Secrets Watch.
  • “Chinese court hands down milestone IP ruling: Shanghai worker for Eli Lilly and Co. forced to pay 20 million yen for stealing trade secrets,” advises Zach Warren for Inside Counsel.
  • “S.C. Supreme Court Addresses Trade Secrets in Discovery,” advises Eric Ostroff in his Protecting Trade Secrets blog.
  • “Judge Rejects Kolon Recusal Bid In DOJ Trade Secrets Case” reports Law360.
  • “Controlling Risk in Non-Compete Litigation,” advises Jason Cornell of Fox & Rothschild for Mondaq.
  • For some practical tips to, “Stop Employees from Taking Information to Compete Against You,” see M. Cheryl Kirby’s post for Strasburger’s Noncompete Blog.
  • “Be Wary of Illinois Choice of Law Provisions in Non-Compete Agreements,” recommends Chip Collins for Burr & Forman’s Non-Compete Trade Secrets Law Blog.
  • “Using Computer Forensics to Investigate IP Theft,” advises Sid Venkatesan and Elizabeth McBride for Law Technology News.
  • “Making a Federal Case for Trade Secret Theft,” from Leigh Ann Buziak of Blank & Rome for Corporate Counsel.
  • “Judge Grimm’s Important Guidance on Social Media Evidence Authentication,” provides Shawn Tuma in his Computer Data Privacy Social Media Law Blog.
Cybersecurity Posts and Articles:
  • “In-House Counsel as Cybersecurity First-Line Defenders,” reports Alice Lin Geene for Corporate Counsel.
  • “5 Ways To Keep Unauthorized IP Out Of Your Supply Chain,” advises Marlisse Silver Sweeney for Corporate Counsel.
  • “You can’t firewall human nature,” warns JP Mangalindan for Fortune.
Computer Fraud & Abuse Act Posts and Articles:
  • “Ex-Dresser-Rand Managers Get Trade Secrets Suit Pared,” Law360 reports that a federal court in Pennyslvania has adopted the reasoning of U.S. v. Nosal.
  • “New Hampshire Struggles with First Circuit Precedent on the Computer Fraud and Abuse Act, Too,” advises Brian P. Bialas for Foley & Hoag’s Massachusetts Noncompete Law Blog.
  • “Revisiting ‘Damage’ and ‘Loss’ Under the Computer Fraud and Abuse Act,” considers Kenneth Vanko for JD Supra Law News.