Illinois Governor Signs New Non-Compete Bill

24 08 2021

LexBlog/99 Park Row
Gregory H. Andrews
August 23, 2021

The Illinois General Assembly passed a major bill in May that significantly alters how and when employers can use restrictive covenants with Illinois employees.  Illinois Governor JB Pritzker signed the bill into law on August 13, 2021, and it will go into effect January 1, 2022.

We provided details and analysis on the new law here.

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The content in this post was found at https://www.lexblog.com/2021/08/23/illinois-governor-signs-new-non-compete-bill/ Clicking the title link will take you to the source of the post and was not authored by the moderators of freeforafee.com

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Former Google engineer pleads guilty to stealing confidential document

21 03 2020

Anthony Levandowski, the man at the center of Google’s epic legal battle with Uber over trade secrets, has agreed to plead guilty to stealing a single confidential document from Google. The guilty plea is likely to lead to a prison sentence of between two and two-and-a-half years.

Levandowski, a gifted engineer, was one of the early stars of Google’s self-driving car project. In 2015, he decided to leave Google to start his own self-driving car startup. According to the plea deal, on his way out the door, Levandowski downloaded thousands of confidential Google documents and transferred them to his personal laptop. Uber acquired the startup a few months later in a deal worth hundreds of millions of dollars.

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The content in this post was found at https://arstechnica.com/tech-policy/2020/03/former-google-engineer-pleads-guilty-to-stealing-confidential-document/ Clicking the title link will take you to the source of the post. and was not authored by the moderators of freeforafee.com

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The Dark Side of Secrecy: What Theranos Can Teach Us About Trade Secrets, Regulation and Innovation

30 09 2019
James Pooley
IP Watchdog
Sept. 25, 2019
The spectacular failure of blood-testing firm Theranos is the subject of a riveting book, Bad Blood by investigative reporter John Carreyrou, and an engaging documentary, “The Inventor” on HBO, focusing on Elizabeth Holmes, the once-celebrated wunderkind who dropped out of Stanford at age 19 to “change the world” with a device that would perform hundreds of diagnostic tests with a few drops of blood from a finger stick. . . But even the Theranos story doesn’t mean that trade secret law is inherently dangerous. Consider Apple, one of the world’s most secretive companies. (Holmes famously modeled her clothing and business habits after Steve Jobs.) Apple has consistently used NDAs and secrecy management to protect products under development, to great effect when they are ultimately unveiled, all without touting non-existent technology. And it’s easy to imagine how Theranos might never have happened if investors and business partners had been less credulous and more insistent to understand the technology.
The content in this post was found at https://www.ipwatchdog.com/2019/09/25/dark-side-secrecy-theranos-can-teach-us-trade-secrets-regulation-innovation/id=113907/ Clicking the title link will take you to the source of the post. and was not authored by the moderators of freeforafee.com

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Whistleblower Wants to Blow Off NDA

10 10 2018

 

Dear Rich: An IP property blog

Oct 9, 2018

Dear Rich: Does an NDA (nondisclosure agreement) prevent me from reporting illegal activity at work?
A whistleblower — an employee who has a reasonable belief that an employer is violating the law and who reports the violation — is often protected from retaliation by a patchwork of whistleblower laws. . .

For all these reasons, and because of the risks involved in whistleblowing, an attorney’s advice is essential.

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The content in this post was found at https://dearrichblog.blogspot.com/2018/10/whistleblower-wants-to-blow-off-nda.html Clicking the title link will take you to the source of the post. and was not authored by the moderators of freeforafee.com

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And Then There Was One…Massachusetts Adopts Uniform Trade Secrets Act

17 08 2018
Lex Blog
AUGUST 14, 2018
Almost every state in the nation has adopted some version of the Uniform Trade Secrets Act (UTSA). For many years, the two biggest holdouts had been Massachusetts and New York, which both stubbornly clung to a mélange of common law principles to protect trade secrets.
As of Friday, August 10, Massachusetts joined the UTSA club by adopting its own version of the UTSA. However, that adoption was part of a larger effort to regulate employment non-competes…
The content in this post was found at https://www.lexblog.com/2018/08/14/and-then-there-was-one-massachusetts-adopts-uniform-trade-secrets-act/ Clicking the title link will take you to the source of the post. and was not authored by the moderators of freeforafee.com

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Diversity is Important – But Is It A Trade Secret?

7 03 2018

Trade Secret Trends

Mark Romeo and Helen Osun on March 5, 2018

On January 14, 2018, IBM’s Chief Diversity Officer resigned to go work for Microsoft in the same role. The caveat: she had a twelve month non-compete clause.

On February 12, 2018, IBM filed a lawsuit to enjoin its former diversity officer to honor her non-compete agreement with IBM and to recover damages. The suit, filed in Southern District New York court, alleges that the IBM non-compete agreement that the defendant signed has a New York federal and state choice of forum provision and is, therefore, enforceable. In addition to a breach of the non-compete agreement, IBM asserts a claim for misappropriation of its trade secrets. According to IBM, if its former diversity officer “is permitted to work for Microsoft, [she] will inevitably (if inadvertently) use and/or disclose IBM trade secrets for her own benefit and for the benefit of Microsoft.” In addition to injunctive relief (seeking an order requiring its former employee to honor the non-compete agreement), IBM is also seeking compensatory damages. It has also demanded that its former employee remit to them her equity compensation because of this alleged breach of her employment agreement. As to the demand that the employee return the equity compensation she had earned as an employee, IBM’s theory is that the employee is engaging directly in a business which is competitive with IBM. Furthermore, IBM asserts that this is considered a “detrimental activity” under the Long Term Performance Plan agreement in which the employee’s equity awards are governed by and, subject to cancellation and in certain circumstances like this, are subject to repayment.

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The content in this post was found at https://www.crowelltradesecretstrends.com/2018/03/diversity-is-important-but-is-it-a-trade-secret/
Clicking the title link will take you to the source of the post. and was not authored by the moderators of freeforafee.com.

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NuCurrent Alleges Patent Infringement After Samsung Feigns Interest in Business Relationship

14 02 2018

Chicago, IL-based wireless power solutions provider NuCurrent filed a complaint alleging trade secret misappropriation and patent infringement against Korean tech giant Samsung Electronics (KRX:005930). The case, filed in the Eastern District of Texas, alleges that wireless charging technologies incorporated by Samsung into their Galaxy S7 and S8 product lines copies technology which was presented to them by NuCurrent under the terms of a confidentiality agreement.

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The content in this post was found at http://www.ipwatchdog.com/2018/02/11/nucurrent-alleges-patent-infringement-samsung-feigns-interest/id=93485/ and was not authored by the moderators of freeforafee.com. Clicking the title link will take you to the source of the post.



Webinar Recap! 2017 National Year In Review: What You Need to Know About the Recent Cases/Developments in Trade Secrets, Non-Compete, and Computer Fraud Law

27 01 2018

In Seyfarth’s first webinar in its 2018 Trade Secrets Webinar Series, Seyfarth attorneys Michael Wexler, Robert Milligan, and Joshua Salinas presented 2017 National Year In Review: What You Need to Know About the Recent Cases/Developments in Trade Secrets, Non-Compete, and Computer Fraud Law. The panel reviewed noteworthy cases and other legal developments from across the nation over the last year in the areas of trade secrets and data theft, non-competes and other restrictive covenants, and computer fraud. Plus, they provided their predictions for what to watch for in 2018.

As a conclusion to this well-received webinar, we compiled a summary of takeaways:

  • While the Defend Trade Secrets Act provides for an ex parte seizure order, courts have been very unwilling to provide such relief except in extraordinary circumstances.
  • In light of recent state laws and appellate court decisions at both the federal and state level in 2017, choice of venue and choice of law provisions must be carefully considered and strategically implemented.
  • The ABA’s May 4, 2017, Ethics Opinion encourages lawyers to have an open exchange of communication with their clients about the securities measures their firms are taking to safeguard the clients’ confidential information.

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The content in this post was found at https://www.tradesecretslaw.com/2018/01/articles/trade-secrets/webinar-recap-2017-national-year-in-review-what-you-need-to-know-about-the-recent-cases-developments-in-trade-secrets-non-compete-and-computer-fraud-law/ and was not authored by the moderators of freeforafee.com. Clicking the title link will take you to the source of the post.



Key Employee Departures and Trade Secret Risk Assessment

30 12 2017

As a special feature of our blog—special guest postings by experts, clients, and other professionals—please enjoy this blog entry from Charlie Platt, a director at iDiscovery Solutions.

It’s Friday afternoon and the conversation goes a little like this, “Wait, what? They’re leaving? Where are they going? Is there any opportunity to help them reconsider?”

When a key employee departs an organization, it can take a toll on clients and colleagues, productivity, and morale. What follows is a rush of activity: current projects are reviewed, transition plans are quickly drawn up and put in place, and decisions are made about how to replace the departing employee and how to communicate the departure to the rest of the firm and clients.

Unfortunately, this can also raise questions of concern for the organization, such as, “Did they take any electronic documents with them and, if they did, how can we tell?” Today, employees have easy access to more information than ever before and even greater opportunity to walk away with company data. While most don’t, too many make the choice to take something. Despite best efforts and safeguards, the prevalence of mobile devices, cloud storage, USB devices, etc. provide several possible avenues for a misguided employee to take sensitive company data with them when they depart.

Assessing a single avenue (e.g., USB devices) is not very complicated and can be very insightful. One of my iDS colleagues, Arnold Garcia, recently wrote about USB devices and how we can determine the history of their usage on a computer. This can be a big help in understanding if an employee took electronic documents upon departing an organization. Along with USB issues, some other questions to consider are:

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The content in this post was found at https://www.tradesecretslaw.com/2017/08/articles/data-theft-2/key-employee-departures-and-trade-secret-risk-assessment/ and was not authored by the moderators of freeforafee.com. Clicking the title link will take you to the source of the post.



Non-Compete Applies To Facebook Page for Unlaunched Business–Joseph v. O’Laughlin

29 12 2017

This is another case where the defendant allegedly solicits customers or employees over social media in the face of a restrictive covenant. We recently blogged a couple of cases involving solicitations over LinkedIn. This case involves solicitations over Facebook.

O’Laughlin sold his vet clinic to Joseph. The sale agreement contained a non-compete clause that prohibited him from opening a clinic or soliciting patients or employees within 50 miles of the location he sold. The covenant was valid for five years. He sold the clinic for $750,000.

Six months later, O’Laughlin filed a zoning petition to operate a clinic at a location which was 8 miles from the clinic he sold. He formed an entity, create a Facebook page, purchased equipment, and published a “coming soon” page on Facebook. A link directed users to the prospective location in question.

Joseph filed a lawsuit seeking to enforce the covenant and sought injunctive relief. The trial court entered the injunction. O’Laughlin appealed. On appeal, O’Laughlin argued that he did not actually operate a clinic within the prohibited area, and merely creating a Facebook didn’t amount to a violation. He tried to bill these actions as merely “preparatory”. The court is not persuaded.

As an initial matter, the language of the restrictive covenant was broad. It did not cover just the veterinary practice. It also covered engaging or participating in a competitive business. In the court’s view, this encompasses forming an entity, purchasing an equipment, and applying for a zoning exception.

The court also focuses on his solicitation of customers through social media. The court finds his operation of a Facebook page and communications with prospective customers violated the clause:

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Case citation: Joseph v. O’Laughlin, 2017 WL 3599048 (Pa. Super Ct. Aug. 22, 2017)

 

The content in this post was found at http://blog.ericgoldman.org/archives/2017/09/non-compete-applies-to-facebook-page-for-unlaunched-business-joseph-v-olaughlin.htm and was not authored by the moderators of freeforafee.com. Clicking the title link will take you to the source of the post.