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Shhh! It’s Time for Trade Secret Cases

Shhh! It’s Time for Trade Secret Cases . Steve Baron 3-26-09. Cenveo Corp. v. Southern Graphic (1-22-09). What Court? Who’s the plaintiff? Who are the defendants? What are they fightin’ about? What is the Court asked to decide? What does the Court decide and why?.

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Shhh! It’s Time for Trade Secret Cases

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  1. Shhh! It’s Time for Trade Secret Cases Steve Baron 3-26-09

  2. Cenveo Corp. v. Southern Graphic (1-22-09) • What Court? • Who’s the plaintiff? • Who are the defendants? • What are they fightin’ about? • What is the Court asked to decide? • What does the Court decide and why?

  3. Cenveo Corp. v. Southern Graphic (1-22-09) • Court = US DC Minnesota • Plaintiff = Cenveo • Defendants = Southern Graphic and indiv. • Fight = Cenveo wants to stop SG from working with past and current Cenveo clients and using proprietary info. • Court to decide whether to enter preliminary injunction.

  4. Cenveo Corp. v. Southern Graphic (1-22-09) • Court decides: • Grants preliminary injunction in part and denies in part. • What are alleged trade secrets: • Job history information • USB flash drive

  5. Cenveo Corp. v. Southern Graphic (1-22-09) • Cenveo claims: • Breach of duty of loyalty • Tortious interference with employees and customers • Misappropriation of trade secrets • Unjust enrichment • Unfair competition

  6. Cenveo Corp. v. Southern Graphic (1-22-09) • Preliminary injunction factors: • Irreparable harm • Balance of harms • Probability of success on the merits • Public interest

  7. Cenveo Corp. v. Southern Graphic (1-22-09)

  8. Cenveo Corp. v. Southern Graphic (1-22-09) • Why wasn’t Cenveo entitled to a preliminary injunction to stop SG from working with past and present clients? • No irreparable harm • Balance of harms in favor of SG employees • Right of clients to work with whom they want

  9. Cenveo Corp. v. Southern Graphic (1-22-09) • Why was Cenveo entitled to an injunction on information relating to job histories? • Sufficient trade secret • Competitively advantageous • Would be irreparably harmed • High degree of probability of “inevitable disclosure”

  10. ClearOne v. Chiang (2007) • What court? • Who’s the plaintiff? • Who are the defendants? • What’s the fight about? • What’s the procedural posture?

  11. ClearOne v. Chiang (2007) • Court = USDC Utah • Plaintiff = ClearOne = Maker of wideband code • Defendants = Biamp licenses object code from Wideband • The fight’s about whether the code is a trade secret • The posture: Biamp files a motion to dismiss

  12. ClearOne v. Chiang (2007) • Biamp says: it can’t read the object code; only machines can read object code. • Court says: who cares. It doesn’t matter. • Biam says: object code was publicly available. • Court says: who cares. Even if object code available, the source code (human readable) may still be protectable trade secret. • Result: Motion to dismiss complaint denied.

  13. Taco Bell v. TBWA (2009) • http://www.youtube.com/watch?v=M8sZ1DWsAHE/

  14. Taco Bell v. TBWA (2009) • What court? • Who’s the plaintiff? • Who’s the defendant? • What are they fightin’ about? • What’s the trade secret?

  15. Taco Bell v. TBWA (2009) • Court = Ninth Circuit Court of Appeals • Plaintiff/Appellant = Taco Bell • Defendant/Appellee = TBWA • They’re fightin’ about who should pay for the use of the psycho chihuahua character. • The confidential TS is the concept of using a psycho chihuahua as a Taco Bell mascot

  16. Taco Bell v. TBWA (2009) • Underlying case: Wrench v. Taco Bell • Jury finds that Taco Bell breached and implied confidentiality agreement. • Awards Wrench $30 million, which mounts to $42 million with interest.

  17. Taco Bell v. TBWA (2009) • This case: • Question presented: Is Taco Bell’s ad agency, TBWA, liable for “indemnity” to Taco Bell? • Trial court granted summary judgment for TBWA. • Ninth Circuit agrees: TBWA not aware of implied contract b/t Taco Bell and Wrench.

  18. Quote of the Day • “Do not tell secrets to those whose faith and and silence you have not already tested.” • Elizabeth I

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