Source: https://www.faircompetitionlaw.com/2011/11/19/trade-secret-noncompete-issues-and-cases-in-the-news/
Timestamp: 2019-04-24 22:24:35+00:00

Document:
UPDATED November 24; updates in bold.
UPDATED November 27; updates in bold/italic.
The Leahy-Smith America Invents Act became was passed on September 16, 2011, and, as part of a sweeping overhaul to US patent law, will expand trade secret defenses to patent infringement actions.
Seagate won a $525,000 trade secret award in an arbitration against Western Digital, which Seagate accused of misappropriating trade secrets through a former Seagate employee. Story here.
A blogger accused of trade secret misappropriation can keep his or her identity secret. Story here.
Groupon sued employees who left for Google and who allegedly took Groupon’s trade secrets with them. Story here.
The Uniform Trade Secrets Act has been adopted in some form or another in all states but Massachusetts, New Jersey, New York, and Texas. Of these states, New Jersey is closest to adopting the UTSA. See New Jersey Poised to Adopt the Uniform Trade Secrets Act. The UTSA does leave open questions about the scope of other common law claims that are still permitted. For some discussion on that issue, see here.
Further confirmation of my research (and personal experience) revealing an uptick in noncompete and trade secret litigation. See Brighter economy means noncompete, nonsolicitation litigation increasing.
Two recent noncompete decisions from the 1st Circuit suggest the need for revisions to certain provisions in existing Massachusetts noncompete agreements and similar restrictive covenants.
Virginia noncompete law is “incrementally clarified.” Noncompetes may need to be updated. The case is Home Paramount Pest Control Cos. v. Shaffer.
Georgia’s first reported decision to apply Georgia’s new blue pencil rule: PointeNorth Insurance Group v. Zander. Nice discussion of the case here.
The Eastern District of Pennsylvania finds that the automatic stay in bankruptcy does not apply to injunctive enforcement of a noncompete: In re Stone Resources.
A Texas appeals court says that the court cannot reform a noncompete to eliminate the damages remedy otherwise available through arbitration: Gray Wireline Service, Inc. v. Cavanna.
Arizona federal court refuses to give effect to choice of law provision in a noncompete: Pathway Medical Technologies, Inc. v. Nelson. In contrast, a recent North Carolina case (Akzo Nobel Coatings Inc. v. Rogers) did precisely the opposite. For a nice summary of the issues (under Delaware law) in the case – which are common issues in these types of cases – see A Covenant Not To Compete Cornucopia From The Business Court.
H-P loses race to courthouse (Texas vs. California) and Cisco’s GC speaks out (loudly) about H-P’s efforts to enforce its noncompetes. Story here.
Illinois federal court analyzes how much consideration is sufficient for a noncompete: LKQ Corp. v. Thrasher.
Big things are brewing: Boston Beer (Sam Adams beer maker) sued Anchor Brewing (Anchor Steam beer maker). Story here and Boston.com editors’ reaction here.
No implied noncompete in the sale of a business in Alabama: Pinzone v. Papa’s Wings, Inc. For a nice summary see Legal Developments in Non-Competition Agreements.
For some interesting reading on the policy of noncompetes, see The Law and Policy of Non-Compete Clauses in the United States and Their Implications by Jay Kesan and Carol Hayes; and Noncompetes and Intentor Mobility: Specialists, Starts, and the Michigan Experiment by Matt Marx, Deborah Strumsky, and Lee Fleming.

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