Trade Secret Protocols Not Followed: Wikileaks

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This week’s disclosures by Wikileaks of hundreds of thousands of classified, secret documents is a stark reminder of the admonitions that we trade secrets lawyers have been saying for years:  It is not enough to have protocols to protect your secrets – the protocols must be followed.

According to recent accounts of the incident (see here), an Army private (Bradley Manning) was able to download the quarter of a million secret documents by copying them onto a Lady Gaga music CD he had burned at home and a memory stick. Although protocols that supposedly would have identified his activities were in place, the protocols we reportedly not followed.

So, what now? Take heed. Make sure you have appropriate protections in place and then follow them. For a summary of the proper protections see The Who, What, Where, When, How, and Why of Trade Secret Audits and (soon to be on-line) What you need to know about protecting trade secrets in New England In-House (November 2010 issue).

 

Social Media is Not Social “Security”

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A lot has been written on how insecure social media can be and the need to assess the risks. I won’t bother to add more.  I am, however, passing along a very-well written (and lengthy) discussion of many of these issues – including the ethical implications for lawyers.

Part One: The Basics and Framing the Issues

Part Two: Privacy and the Cloud

Part Three: Relationships in the Cloud

Part Four: E-Discovery and Digital Evidence

Part Four and a Half: Extending the Discussion of E-Discovery in the Cloud

Part Five: Ethics or Why All Lawyers-Not Just Technogeek Lawyers Like Me-Should Care About Data Security

Enjoy the reading!

How can we help?

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Earlier this month, I tried something a bit different. Doing a take-off on what I do in the last class of the Trade Secrets and Restrictive Covenants course that I teach at Boston University School of Law, I pointed out (perhaps the obvious) that this blog is for you. Accordingly, I asked you to tell me what you would like to read about. As I said in the post, as long as it falls within the subject of Fair Competition Law, I’ll post on it.

So, I am reiterating my offer. 

Please feel free to let me know what we should cover here. You can post a comment to this or email us at info@beckreed.com.

I look forward to your suggestions.

 Thank you!!

Georgia Update

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Well, there continues to be a lot of discussion about Georgia’s new noncompete law. The most recent discussion at this point is not about the substance, however. Rather, it’s about whether the law is valid.

In short, there is a discrepancy between the timing of when the new law is supposed to take effect (November 3) and when the amendment to Georgia’s constitution (necessary to enact that law) permits the law to take effect.

For all the worry, however, the rumor is that the issue will be quickly cleaned up through corrective legislative action. See New Law Needs Fix and Lawmakers scramble over mistake involving noncompete law.

Urban (Trade Secret) Legends Debunked

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While there are many tales of trade secrets, the two most heralded are: (1) the heroic measures taken to protect the secret formula to Coke and (2) the claim that the origins of trade secret law date back to Roman times. It seems that neither may be true.

Coca-Cola: Most people hold out the secret formula to Coca-Cola as the quintessential trade secret. According to the legend, only two Coca-Cola executives are privy to the formula and they are never permitted to fly together or be in the same place at the same time. The legend sometimes continues with more elaborate details about vault access and other security measures.

While Coca-Cola does indeed go through great lengths to protect its secret formula, the lure of the paradigmatic trade secret protection program is apparently a century old marketing ploy. The myth was debunked by Snopes here.

Roman Trade Secret Law: No one (well, no lawyer) doesn’t love to trace the ancestry of modern laws back to antiquity. Such is the case in trade secrets law.

The legend goes that trades secrets were protected under Roman law by a claim known as, “actio servi corrupti,” interpreted as an “action for making a slave worse” (or an action for corrupting a servant). Apparently, the legend was introduced in 1929 in an article entitled, “Trade Secrets and the Roman Law; the Actio Servi Corrupti.” However, according to an article by University of Georgia Law School professor, Alan Watson, while the claim existed, it was not used to protect trade secrets.

International Trade Secrets Links Added

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International trade secret theft has become an increasing problem.

As a primer for our readers, we have created an “International Trade Secrets” links section, which we are in the process of populating with resources that provide good summary information about the laws of countries around the world.

We hope you find the resources useful.

50 State Noncompete Survey Chart Updated

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The 50 state survey of noncompete laws has been updated, primarily to reflect the change in Georgia law. It is available for download here.

Please note that the chart will be periodically updated. So, please check back regularly or email my firm at info@beckreed.com, and we will automatically send the latest updates as they become available.

Georgia Noncompete Law Changed!

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Well, the waiting is over. Georgia voters voted to change their constitution to permit noncompetes to be more enforceable. 

Georgia had been long known as one of the harder states in which to enforce noncompete agreements. However, as of yesterday, that has all changed. Georgia has a new noncompete law, which is much more tolerant of noncompetition agreements than in the past.

Most significantly, the new law permits noncompetes to be amended by the courts. Previously, if a noncompete was too broad, it would be void – in its entirety. No more. Georgia now joins the ranks of more than half the states in the country that permit reformation – and the vast majority in the country that permit modification (whether reformation or blue penciling). See Beck Reed Riden LLP‘s 50 State Noncompete Survey.

The law was intended to make Georgia more friendly to business. Time will tell. We look forward to seeing the results of this experiment, which perhaps will provide guidance to other states as they wrestle with the impact of noncompete laws on innovation and business development.

Tell Us

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I am trying something a bit different. It’s a take-off on what I do in my last class in the Trade Secrets and Restrictive Covenants course I teach at Boston University School of Law. So, here it goes…

This blog is for you. While I enjoy writing it, and will continue to post on things that I think are relevant, timely, or just important to know, in the end, it’s all designed to make it interesting and informative for the readers.

With that in mind, what would you like to read about? As long as it falls within the subject of Fair Competition Law, I’ll post on it. Tell us.

How? Just email us at info@beckreed.com. Then, come back and look for a post.

I look forward to your suggestions.  Thank you!!

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