Our law firm was recently hired to represent clients – former employees – being sued for allegedly violating a noncompete agreement, trade secret misappropriation, and other business related claims.
As is typical with these sorts of cases, the Plaintiff, the former employer, was seeking injunctive relief in the form of a temporary restraining order (TRO)
Trade secret theft continues to be a major concern (or it should be) for businesses. And the numbers back up this conclusion; In an article by by Will Yakowicz, appearing in Inc., “How to Avoid Becoming a Victim of Trade Secret Theft,” it’s noted that:
Criminal theft of corporate trade secrets is reaching epidemic levels, experts say … the number of trade secret cases in U.S. federal courts doubled between 1988 and 1995, doubled again from 1995 to 2004, and is projected to double again by 2017.
Mr. Yakowicz’s article goes on to provide business owners with great advice on how to reduce trade secret thefts in your business. Having recently wrapped a trade secret misappropriation trial filed in Michigan state court, I can definitely say that the article is worth reading and the recommendations should be meaningfully considered by any business with information worth protecting.
For background purposes, I represented a company and its executives who were sued for claims involving trade secret misappropriation, breach of a non-compete agreement, and other business related claims. One problem with any sort of lawsuit is that often times the facts get in the way.
This became clear as two days after the trial began, the lawsuit settled on terms very favorable to my clients (Plaintiff had requested over $860,000 at Michigan’s case evaluation procedure, which resulted in the evaluation panel awarding $175,000 against my clients). However, the parties settled the lawsuit for $8,500.00 payable over time.
Continue Reading What Steps Can Your Business Take to Avoid Becoming a Victim of Trade Secret Theft?
Trade Secret Saturdays is a new initiative for a weekly round-up of articles and blog posts focused on trade secrets that caught our attention or that should be on your company’s radar screen. Enjoy.
Enforcing noncompete agreements will depend upon state law. What law applies will be critical for determining if a noncompete agreement is enforceable.
Continue Reading Enforcing Noncompete Agreements – What Law Will Apply?
One of the more noteworthy employer/employee trade-secret misappropriation and Computer Fraud and Abuse Act (CFAA) cases came to an end earlier this week. Specifically, Mr. David Nosal wa sentenced on January 8, 2014 to one year and one day in prison. He was convicted for misappropriating his former employer’s trade secrets and improperly accessing the
An employer making a job offer to a new employee needs to have in place best practices for avoiding being sued in a noncompete agreement dispute or a trade secret misappropriation claim.
Continue Reading Playbook to Avoid Trade Secret & Noncompete Agreement Violations Involving New Hires
Noncompete agreements have become a staple of the employment relationship. These agreements are intended to give employers the ability to protect their business against unreasonable and unfair competition. Such competition usually takes the form of a former employee directly competing against the employer either by starting a similar business or jumping ship for competitor.
A little bit of knowledge can be a dangerous thing, especially when legal issues are involved. This truism makes the Internet a virtual minefield for the unwary looking for “free legal advice,” which often happens in the area of post employment restrictions and noncompete agreements. As discussed below, however, a noncompete lawsuit arising from incomplete
Regardless of your political preferences, President Obama’s election victory offers an important lesson that can be extended to your company’s protection of trade secret intellectual property.
In sports – similar to politics or business – a critical strategy for success is the concept of “protecting your home turf.” In this regard, after the dust settled on
Last week I attended the State Bar of Michigan’s Information Technology Law Section Seminar, Core Legal Issues in a High-Tech Business World. It was a great overall day of presentations.
One presentation that stood out from a business owner’s perspective, however, was given by attorney Leigh Taggart – Protecting Software Trade Secrets.