A recent opinion by the Dallas Court of Appeals explains what constitutes a trade secret and gives an example of information acquired through unfair means. The court defines a trade secret as “any formula, pattern, device, or compilation of information that is used in one’s business and presents an opportunity to obtain an advantage over competitors who do not...
Continue ReadingIn determining whether a non-compete agreement is enforceable, a Texas court will assess whether the consideration given by the employer justifies the non-compete agreement. Texas courts have held on multiple occasions that an employer’s providing of confidential information is sufficient consideration for a non-compete agreement. Even without an enforceable non-compete agreement, a Texas employer has legal rights and remedies...
Continue ReadingA recent case from the Dallas Court of Appeals explains several concepts that frequently come up in trade secret theft cases. In Global Water Group, Inc. v. Atchley, No. 05-06-00709-CV, 2008 WL 384436 (Tex. App.–Dallas 2008, no pet. h.), the plaintiff had created a water purification system. When the plaintiff’s president resigned and formed a competing company, the plaintiff...
Continue ReadingNot infrequently, whenever an employer hires a competitor’s ex-employee, the competitor sues not only its ex-employee (for an alleged non-compete violation, breach of fiduciary duty, misappropriation of trade secrets, tortious interference, etc.), but also the new employer. The plaintiff contends, for example, that just as its ex-employee is liable for using and disclosing its trade secrets, the new employer...
Continue ReadingVery often, a departing employee won’t take customer lists or other confidential documents with him, but a lot of the information he has memorized will be considered by his former employer to be confidential. Customer names and contact information, for example, are routinely memorized by sales representatives. Nevertheless, the sales representative’s employer typically contends that such information is confidential....
Continue ReadingIn trade secret cases, the parties routinely produce confidential and proprietary information to each other. Typically, a protective order is entered that permits the parties to designate information as confidential (which means, inter alia, that it can only be used in the litigation) and states how the information is to be treated. Super-sensitive information can be designated as “Attorneys...
Continue ReadingIncreasingly, America’s economic preeminence in the world is challenged by other nations, including most notably China. In some cases, "economic espionage" is alleged when American trade secrets are taken abroad. Here’s an interesting story about DuPont’s trade secrets that were taken in the U.S. and, it was believed, bound for China: http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20070302/NEWS/703020363/-1/NEWS01 www.mylawteam.com
Continue ReadingThe elements for misappropriation of trade secrets under Texas law are well known. A plaintiff must establish that: (a) a trade secret existed; (b) the trade secret was acquired through a breach of a confidential relationship or was discovered by improper means; (c) the defendant used the trade secret without the plaintiff’s authorization; and (d) the plaintiff suffered damages...
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