Trade Secrets | Noncompetes
The Business Litigation Session (the “BLS”) of the Massachusetts Superior Court just issued a decision on the scope of preemption under Massachusetts “new” (effective October 1, 2018) trade secret law, the Massachusetts Uniform Trade Secrets Act (sometimes referred to as “MUTSA,” and other times as “MTSA”). For context, last year, we saw the first two decisions … Continue reading Massachusetts Uniform Trade Secrets Act: Preemption in State Court
Episode 2 of Fairly Competing is out! In this episode, Ben Fink, John Marsh, and I explain what noncompetes and other restrictive covenants are, how they are enforced, how the laws have been changing, and what legislative and regulatory changes companies and employees can expect to see on both the state and federal levels in the near … Continue reading Fairly Competing – Episode 2: The Basics of Noncompete Law, and What Lies Ahead
Fall starts today. Happy fall! Below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates was to provide ideas for maintaining some quality of life while on lock down. The original post has been updated continually to contain all of the … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home (Start of Fall Update)
Happy Labor Day weekend! Below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates was to provide ideas for maintaining some quality of life while on lock down. The original post has been updated continually to contain all of the suggestions, … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home (Labor Day Weekend update)
Below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates was to provide ideas for maintaining some quality of life while on lock down. The original post has been updated continually to contain all of the suggestions, whereas the separate update … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home (August 23 update)
As many of you know, I am very involved with the American Intellectual Property Law Association’s Trade Secret Law Committee. And, as you may also know, each year, we hold a multi-day, in-depth program dedicated to advanced issues and hot topics in trade secret law. It is truly one of the premier trade secret programs. In light … Continue reading AIPLA Trade Secret Law Summit is Coming Up, and It’s Accessible From Your Couch
California has long been hostile to employee restrictive covenants. But, its stance on B2B covenants has been less clear. Yesterday (August 3, 2020), we got the answer. Spoiler alert: B2B noncompetes are permitted and will be judged by a reasonableness standard. The questions answered by the California Supreme Court In Ixchel Pharma, LLC v. Biogen, Inc. … Continue reading California Takes a Reasonable(ness) Approach to B2B Noncompetes
Once again, Senators Elizabeth Warren and Chris Murphy are pushing for federal regulation of noncompetes. By way of background, starting in 2015, a few U.S. Senators (Senators Warren and Murphy included) began trying to convince the federal government to wrest power over the appropriate regulation of noncompetes from the states. Having been unable to convince Congress … Continue reading Senators Warren and Murphy Again Push the FTC to Regulate Noncompetes
Below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates was to provide ideas for maintaining some quality of life while on lock down. The original post has been updated continually to contain all of the suggestions, whereas the separate update … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Bi-Weekly Update (July 18)
For the long holiday weekend, here are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” But first, Happy Fourth! And, for the holidays, don’t forget that today is the long-awaited online debut of Hamilton! The purpose of the original post and these updates is to provide ideas for maintaining some quality … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Bi-Weekly Update (July 3)
Given the recent changes to Indiana law and Virginia law, both of which take effect on July 1, I have again updated my 50 State Noncompete Chart. The chart is now current through June 27, 2020. And remember that since last year, the chart is more searchable (so, for example, you can search by state, as opposed … Continue reading 50 State Noncompete Chart Updated (June 27, 2020)
As we start the weekend, here are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” But first, Happy Father’s Day to all the dad celebrating Father’s Day in quarantine! (See below for some ideas.) The purpose of the original post and these updates is to provide ideas for maintaining some quality … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Weekly Update (June 20)
We recently prepared a “Ten Minute Training” video for companies to distribute to their employees to help minimize the risks posed to trade secrets as a result of so much of the workforce working from home – especially given the very slow return to “normal.” Like the other practical resources we publish, including our 50 state noncompete chart (which will … Continue reading PSA: Employee Trade Secret Training Video Now Available
As we head into the weekend, here is a short supplement to Wednesday’s additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates is to provide ideas for maintaining some quality of life while on lock down. Note that the original post is updated … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Weekly Update (June 13)
With all that is going on, I paused updates to “Stuck at Home Doesn’t Have to Mean Bored at Home.” But, now that I am going to resume, I want to take a moment before I do to acknowledge the pain and suffering around our country and to express my solidarity with those standing for equal … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Weekly Update (June 10)
About twice a year, I update my chart of reported noncompete and trade secrets decisions. Here is the latest. As regular readers of this blog know, several years ago, I became curious to see how many reported trade secret and noncompete decisions were issued each year in all of the federal and state courts around the … Continue reading New Trade Secret and Noncompete Case Growth Graph (Updated June 7, 2020)
As we are just starting our Memorial Day Weekend, below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates is to provide ideas for maintaining some quality of life while on lock down. Note that the original post is updated … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Weekly Update (May 23)
Hope for the best, plan for the worst. – John Jay The ability to protect trade secrets (and other legitimate business interests, including customer goodwill) has been hit by a perfect storm caused by the current coronavirus pandemic: Loss of Control. So much of the workforce is now working from home; consequently, it can be … Continue reading A primer and checklist for protecting trade secrets and other legitimate business interests before, during, and after lockdown and stay-at-home orders
The identification of trade secrets in misappropriation litigation is a critically important and evolving area of trade secret law. Not surprisingly, it is the subject of widely divergent and conflicting approaches taken in different states and by different courts and judges. The Sedona Conference’s working group on trade secrets has created a draft Commentary on the Proper … Continue reading The Sedona Conference Seeks Public Comment on the Identification of Asserted Trade Secrets in Misappropriation Cases
As we head into the weekend, below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates is to provide ideas for maintaining some quality of life while on lock down. Note that the original post is updated regularly to contain all … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Weekly Update (May 15)
As we head into the weekend, below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” But first, Happy Mother’s Day to all the moms celebrating Mother’s Day in quarantine! (See below for some ideas.) The purpose of the original post and these updates is to provide ideas for maintaining some … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Weekly Update (May 8)
As we start to think about the weekend, I discovered a time-sensitive addition to “Stuck at Home Doesn’t Have to Mean Bored at Home.” Accordingly to Rolling Stone, “Over 200 celebrities, entertainers, artists and leaders will appear on The Call to Unite,” which will stream live on unite.us, Facebook, YouTube, Twitter, and elsewhere for 24 hours starting today, Friday, May … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Supplement (May 1)
As we start to think about the weekend, below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates is to provide ideas for maintaining some quality of life while on lock down. Note that the original post is updated regularly … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Weekly Update (April 30)
The Computer Fraud and Abuse Act deems certain uses of a computer to be unlawful (civilly and criminally). But, the Act is not the picture of clarity. The language that has created the most significant confusion is the prohibition on accessing a computer “without authorization or exceeding authorized access.” The 9th circuit summarized the problem … Continue reading Supreme Court to Resolve CFAA Circuit Split
As we head into the weekend, below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates is to provide ideas for maintaining some quality of life while on lock down. Note that the original post is updated regularly to contain all … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Weekly Update (April 24)
As quiet as Virginia was in passing its noncompete for low wage (read “average wage”) employees, Indiana was even more quiet in passing legislation to restrict physician noncompetes. What it says… Buried in a 32-page public law entitled “AN ACT to amend the Indiana Code concerning health” is the following: SECTION 8. IC 25-22.5-5.5 Chapter … Continue reading Indiana Quietly Passes New Physician Noncompete Legislation
This seems to be the month for unicorns. In the past 30 days, we have had three. First, there was the trademark case – literally about unicorns. Then, the First Circuit gave us rare insight into its approach to the enforceability of forum selection clauses in restrictive covenants. And now we’ve been given rare insight into … Continue reading Attorneys’ Fees, Costs, Statutory Interest, and Remittitur in Trade Secrets Cases: Covidien LP v Esch
The Massachusetts Noncompetition Agreement Act (the “NAA”) does not impose on a “garden leave clause” the same requirements it imposes on a noncompetition agreement. The NAA states that, “[t]o be valid and enforceable, a noncompetition agreement must meet the minimum requirements of paragraphs (i) through (viii).” G.L. c. 149 § 24L(b) (emphasis added). The last … Continue reading Garden Leave Is Not a Nonconcompete under Massachusetts Law
Below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates is to provide ideas for maintaining some quality of life while on lock down. Note that the original post is updated regularly to contain all of the suggestions, including the updates; these … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – “Daily” Update (April 17)
Virginia is the latest state to follow the trend of imposing a ban on the use of noncompetes for low-wage workers (however defined) and rejecting a California/Oklahoma/North Dakota-style wholesale ban on all employee noncompetes. (For a summary of recent changes and legislative and regulatory efforts, see “Federal Noncompete Initiatives: When you can’t convince the states, ask … Continue reading Virginia Quietly Passes New Noncompete Legislation
Below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates is to provide ideas for maintaining some quality of life while on lock down. Note that the original post is updated regularly to contain all of the suggestions, including the updates; these … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Daily Update (April 13)
Below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” The purpose of the original post and these updates is to provide ideas for maintaining some quality of life while on lock down. Note that the original post is updated regularly to contain all updates; these separate update posts are … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Daily Update (April 10)
The First Circuit’s long-awaited decision in NuVasive v. Day has finally arrived! And, it’s a big nothing burger: nothing new about the new Massachusetts Noncompetition Agreement Act, G.L. c. 149, § 24L (the “MNCA,” as the court calls it). But, that’s not surprising. The case was really an appeal of a preliminary injunction issued in … Continue reading New First Circuit Noncompete Case Sheds No Light on Massachusetts Noncompetition Agreement Act
Below are the latest additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” (No, this post is not an accident! 🙂 ) The purpose of the original post and these updates is to provide ideas for maintaining some quality of life while on lock down. Note that the original post is updated regularly … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Daily Update (April 6)
With the continuing unfolding of the COVID19 pandemic, I remain particularly focused on identifying resources that I hope will be helpful to people while they try to cope with the new reality (hence the regular updates, now as separate posts, to “Stuck at Home Doesn’t Have to Mean Bored at Home”). However, noncompete and trade … Continue reading Recent Articles on Noncompetes
Below are this weekend’s additions to “Stuck at Home Doesn’t Have to Mean Bored at Home.” Enjoy . . . Home Not Alone (with Kids) If you’re in need of some more ideas for entertaining kids, have a look at “COVID-19: Games and activities using typical household items.” Really out of ideas? How about a homemade teddy … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Daily Update (April 4)
On March 21, I posted, “Stuck at Home Doesn’t Have to Mean Bored at Home.” (The picture is Hugo Gernsback’s “The Isolator,” which was a device to aid in concentration when working home.) The purpose of the post was to provide ideas for maintaining some quality of life while on lock down. Since then, I … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home – Daily Update (April 2)
As we all try to (optimistically) plan for a resumed in-person world, please mark your calendars for the rescheduled AIPLA 2020 Trade Secret Law Summit. It is truly one of the premier trade secrets programs. We have rescheduled it for Monday, August 31, and Tuesday, September 1, in San Francisco. You can register here. There will be … Continue reading RESCHEDULED Trade Secrets Program: AIPLA Trade Secret Law Summit
You can often can tell where a decision is headed just by its opening line. In Peggy Lawton Kitchens, Inc. v. Hogan (a seminal trade secret case in Massachusetts about the theft of a beloved secret chocolate chip cookie recipe), the Court starts its decision stating, “Nothing is sacred.” If you’re the defendant, you know … Continue reading Preliminary Injunctions, Rainbows, and Unicorns During a National Emergency
Apparently Hugo Gernsback knew this day would come. (Well, maybe not this day.) The Isolator aside, these are certainly crazy times. Whether on full lockdown working from home or something short of that (for now), my guess is that soon enough we’ll all acclimate to the “new normal.” That said, it’s hard to believe that … Continue reading Stuck at Home Doesn’t Have to Mean Bored at Home
Ask two lawyers for their opinion, and you’ll get three opinions. But I asked 21 lawyers and a paralegal and got only one opinion. That opinion that is set out in a letter we collectively submitted to the FTC in response to questions posed by the FTC in connection with its Workshop, “Non-Compete Clauses in … Continue reading FTC Noncompete Workshop – Update on Our Submission
Before posting anything more, I wanted to take a moment to send my thoughts to all of those affected – directly and indirectly – by COVID-19. COVID-19 has had, and will continue to have, increasingly wide-reaching, sometimes devastating, impacts on individuals, families, communities, businesses, and the global economy. I hope that everyone is taking active … Continue reading COVID-19
I have updated my 50 State Noncompete Chart to add statutory references for the recent developments. Click here to get the latest version of the 50 State Noncompete Chart. (The chart is current through March 12, 2020.) Though a stand-alone resource, the noncompete chart works as a companion to our 50 state and federal survey chart of trade secret laws, … Continue reading 50 State Noncompete Chart Updated (Statutory References Added)
The FTC conducted its first workshop on noncompetes on January 9, 2020. An opportunity for the public to submit comments remains open until March 11, which is only two weeks away. I attended the workshop and plan to submit written comments. If you’re thinking about making your own submission or just want to know what … Continue reading What you need to know about the FTC Workshop on Noncompetes
Hello all, just a quick note, we are just under a month away from the AIPLA’s 2020 Trade Secret Law Summit, truly one of the premier trade secrets programs. The Summit is scheduled for Monday, March 16, and Tuesday, March 17, at in San Francisco. You can register here. There will be a great group of … Continue reading Upcoming Trade Secrets Program: AIPLA Trade Secret Law Summit
*This post was originally published by Erika Hahn and me on Massachusetts Lawyers Weekly under the title, “Consideration happens, but not during garden leave.” The 2018 Massachusetts noncompete law made many significant improvements to preexisting law, but garden leave is not one of them. In October, Erika Hahn and I wrote an article, “The new noncompete … Continue reading Massachusetts Noncompete: Consideration Happens, But Not During Garden Leave
New year, new laws, new issues: First, at the state level… A number of states have modified their noncompete laws last year: Florida: banned noncompetes for specialist physicians in certain underserved communities Maine: banned noncompetes for workers earning less than approximately $50,000, required advance notice that a noncompete will be required and a six-month minimum … Continue reading Quick Tips for the New Year: What to Know About The Recent and Upcoming Changes in Noncompete Laws Around the Country
Thursday is approaching! As mentioned in our last post on the subject, the FTC will be holding a hearing on January 9, 2020 (at 8:30 a.m. at its Headquarters Building, 600 Pennsylvania Avenue, NW, Washington, DC) “to examine whether there is a sufficient legal basis and empirical economic support to promulgate a Commission Rule that would … Continue reading New Details about the FTC Workshop on Noncompetes
Happy New Year! On January 9, 2020, the FTC will be holding a hearing (at 8:30 a.m. at the FTC’s Headquarters Building, 600 Pennsylvania Avenue, NW, Washington, DC) “to examine whether there is a sufficient legal basis and empirical economic support to promulgate a Commission Rule that would restrict the use of non-compete clauses in … Continue reading Next up at the feds: The FTC holds its next hearing on noncompetes
*This post was originally published by Erika Hahn and me on Law360 under the title, “Noncompete Misconceptions May Be Inhibiting Reform.” Federalism is alive and well. For about 200 years, employee noncompetes have been governed by state law. While the first noncompete case in the United States was in Massachusetts, all but three states allow … Continue reading Federal Noncompete Initiatives: When you can’t convince the states, ask the feds.
Earlier this year, Senator Bruce Tarr introduced a bill to address one of the open issues under the new noncompete law. Specifically, the new noncompete law prohibits the enforcement of noncompetes against (among others) people “terminated without cause.” But “cause” is not defined in the statute. So, questions have arisen about what “cause” means. Does it … Continue reading Massachusetts Legislature Considers It’s First Clarification Of Its New Noncompete Law
Since the beginning of this year (2019), the Massachusetts legislature has been quietly considering adding another exemption to its noncompete laws. This one would be for physician assistants (PAs). Two related bills (H.1686 and S.1050) provide for the following language to be added to G.L. c. 112: Section 9L. Any contract or agreement which creates or … Continue reading Massachusetts Is Considering a New Noncompete Exemption for Physician Assistants
Leaving your job? No problem. Going to a competitor? No problem (maybe). Taking stuff that doesn’t belong to you? Problem – definitely. Companies are particularly sensitive the misappropriation of information, as they should be. As discussed in a bit more detail in Just out: Another proposed ban on noncompetes, up to 72 percent of employees take … Continue reading Leaving your job? Don’t take anything… anything! New employers take note.
In the past, I tried something a bit different, and I’m going to try again. It’s a bit of a take-off on what I do each year in the first class of the Trade Secrets and Restrictive Covenants course that I teach at Boston University School of Law. Here it is: This blog is for you. … Continue reading You tell us!
Having recently completed my second roundup of new noncompete legislation, I have updated my 50 State Noncompete Chart to reflect the changes since the April update. (See Legislative Update: Recent Changes to Florida, Maine, New Hampshire, and Rhode Island Noncompete Laws – and D.C.’s New Noncompete Bill for the background.) And remember that in the last iteration, I made … Continue reading 50 State Noncompete Chart Updated – Lots of Developments!
It’s just over a year since the “new” Massachusetts Noncompetition Agreement Act took effect, and it already has had some very tangible, positive effects. However, one aspect of the new law — namely, what consideration is required to support a noncompete — continues to create significant uncertainty. In short, while the new “fair and reasonable … Continue reading Consideration under the New Massachusetts Noncompete Law: Compromise Happens
It’s Thursday, so it must be time for another bill to ban noncompetes. This one comes from Senator Chris Murphy (D-CT) and Senator Todd Young (R-IN), and is a federal bill. (As many of you know, there have already been seven states that have changed their noncompete laws just this year alone, and there are many more state … Continue reading Just out: Another proposed ban on noncompetes
It’s hard these days to keep up with the the changing noncompete laws around the country. My most recent post covering recent updates, from not even quite six months ago, is already outdated. Just by early June, three states (each covered in a separate post) had already enacted new noncompete legislation this year alone: Maryland (banning … Continue reading Legislative Update: Recent Changes to Florida, Maine, New Hampshire, and Rhode Island Noncompete Laws – and D.C.’s New Noncompete Bill
About twice a year, I update my chart of reported noncomepte and trade secrets decisions. Here is the latest. As regular readers of this blog know, several years ago, I became curious to see how many reported trade secret and noncompete decisions were issued each year in all of the federal and state courts around the … Continue reading New Trade Secret and Noncompete Case Growth Graph (Updated September 29, 2019)
With three-plus years of Defend Trade Secrets Act (the “DTSA”) law under our belts and almost a year of the “new” Massachusetts new trade secrets law, my new book, Trade Secrets Law for the Massachusetts Practitioner (1st ed., MCLE 2019), provides a detailed review of the law of trade secrets nationally, but with a focus on Massachusetts law. … Continue reading Trade Secrets Law for the Massachusetts Practitioner (my new book)
The other day, I was listening to 1970’s and 80’s music (which I am wont to do, much to my wife’s chagrin). The music, as music often does, evoked memories of the past. Think what you will, but one of those memories was of a decision issued by U.S. District Court Judge O’Toole (for those not familiar … Continue reading Trade Secrets and Noncompetes – Music to My Ears: The Cease and Desist Letter
It turns out that global climate change is caused by a decrease in the number of pirates. Don’t believe it? See the chart to the right. This is an example of mistaking correlation for causation. Correlation does not imply causation. A Developing Problem of Presumed Causation The assumption that correlation implies causation arises often in … Continue reading Correlation Does Not Imply Causation: The False Comparison of Silicon Valley and Boston’s Route 128
On June 24, 2019, the United States Supreme Court issued its much-awaited decision in Food Marketing Institute v. Argus Leader Media, addressing the intersection of trade secrets law and the Freedom of Information Act (FOIA). In short, the Supreme Court held that confidential information is exempt from disclosure under FOIA, regardless of whether (or not) its … Continue reading New SCOTUS Decision on the Intersection of FOIA and Trade Secrets
Who controls what’s in your brain? When a former employee knows his or her former employer’s trade secrets, the former employer may be able to obtain injunctive relief preventing the employee, not just from disclosing such information, but from working for a competitor under the so-called “inevitable disclosure doctrine.” Alternatively stated, “where an employee’s work … Continue reading Inevitable Disclosure Doctrine – A Brief History and Summary
Oregon’s noncompete law has been a work-in-progress for more than a decade, and the legislature is at it again: A new change to Oregon’s already progressive noncompete law. What it says… On May 14, 2019, Oregon Governor Kate Brown signed HB 2992 (“Relating to noncompetition agreements; creating new provisions; and amending ORS 653.295“). Effective January 1, … Continue reading Legislative Update: Oregon modifies its noncompete law – again!
In the continuing stream of states reviewing and modifying their noncompete and trade secrets laws, another state – Maryland – has taken the approach of banning noncompetes for low-wage workers – as suggested by the Obama Administration’s Call to Action. (For earlier developments this year, see New trade secret and noncompete legislation: What’s already happened … Continue reading Legislative Update: Maryland Eliminates Noncompetes for “Low Wage” Workers
On May 8, 2019, HB 1450 (“An Act Relating to restraints, including noncompetition covenants, on persons engaging in lawful professions, trades, or businesses; adding a new chapter to Title 49 RCW; and providing an effective date”) was signed by Governor Inslee. The new law will be effective on January 1, 2020. As explained in New trade … Continue reading Washington State Overhauls Its Noncompete Law
Having just completed my most-recent review of every state’s pending and recently enacted noncompete legislation, I have updated the BRR 50 State Noncompete Chart today (April 27, 2019) to reflect those changes. (See “New trade secret and noncompete legislation: What’s already happened and what you can expect for the rest of the year in every state“ for the background.) … Continue reading 50 State Noncompete Chart Updated
Updated April 28, 2019 Occasionally, I mention blogs and other resources (and include links) when they are relevant to a topic that I’m discussing and they have reliable information. More generally, before refreshing the look of this blog (quite awhile ago at this point), I used to have a so-called “blog roll” (not my term) … Continue reading Recommended Resources for Trade Secrets and Restrictive Covenants (Noncompetes, Nonsolicits, No-Raids, Etc.)
It’s been a while since I’ve had the time to update the Changing Trade Secrets | Noncompete Laws page. Lots has happened in the interim – see below for all of the updates so far this year. I will also be updating the main Changing Trade Secrets | Noncompete Laws page in the very near … Continue reading New trade secret and noncompete legislation: What’s already happened and what you can expect for the rest of the year in every state
Over the past few years, there have been a few bills at the federal level that would ban or limit the use of noncompetes. (I will be updating the Changing Trade Secrets | Noncompete page soon to reflect the more recent of those and some other recent developments, so stay tuned. In the meantime…) This … Continue reading Another Federal Noncompete Bill
In preparation for the start of my class (I teach Trade Secrets and Restrictive Covenants at my old law school, Boston University School of Law), I re-ran my chart of reported noncomepte and trade secrets decisions. As regular readers of this blog know, several years ago, I became curious to see how many reported trade secret … Continue reading New Trade Secret and Noncompete Survey – National Case Graph (Updated January 13, 2019)
It was only a matter of time… we now have a decision. For years, we’ve wrestled with how to handle enforcement or defense of a noncompete agreement between a California employee and an out-of-state employer. It frequently involved a race to the courthouse. Then, in 2013, the United States Supreme Court gave us Atlantic Marine, and … Continue reading It was only a matter of time…
Back in July, I posted a story about how courts and lawyers frequently assess whether a noncompete is overly broad by asking whether the restriction would prevent the employee from working as a janitor. If it can, the agreement is generally considered to be overly broad. See Cleaning up overly broad noncompetes: the “Janitor Rule.” The test has … Continue reading Do we need a replacement for the janitor rule?
The BRR 50 State Noncompete Chart has been updated today to reflect a new laws in Idaho, Massachusetts, and Utah (and a few additional tweaks in other states). (See “Changing Trade Secrets | Noncompete Laws” for the background.) In sum, Idaho removed a presumption that it created in 2016, Massachusetts passed its first noncompete statute, making … Continue reading 50 State Noncompete Chart Updated (Idaho, Massachusetts, Utah)
This is an update to reflect the adoption by Massachusetts of its own version of the Uniform Trade Secrets Act. The background: Until now, every state but Massachusetts and New York had adopted the Uniform Trade Secrets Act (the UTSA) in one form or another – though some may quibble with whether Alabama or North Carolina actually adopted … Continue reading Trade Secrets Laws and the UTSA – A 50 State and Federal Law Survey Chart (updated for Massachusetts)
Last week, I posted an article explaining the new noncompete and trade secrets law reform legislation passed by the Massachusetts Legislature. See Massachusetts noncompete and trade secret reform has arrived: What you need to know. Governor Charlie Baker is expected to sign it into law (by the August 10 deadline). The article above will tell you what … Continue reading Massachusetts’ New Noncompete Law: the Text
Last week, I posted an article explaining the new noncompete and trade secrets law reform legislation passed by the Massachusetts Legislature. See Massachusetts noncompete and trade secret reform has arrived: What you need to know. Governor Charlie Baker is expected to sign it into law (by the August 10 deadline). The article above will tell you what … Continue reading Massachusetts’ New Trade Secrets Law (MUTSA): the Text
Almost a decade in the making, the Massachusetts legislature has today (July 31 – at 11:57 PM) finally passed noncompete reform. Unheralded, however, is the companion updating of Massachusetts trade secrets law. The reform is a significant step in the right direction: The bill (if signed by Governor Baker) largely codifies existing law, while making … Continue reading Massachusetts noncompete and trade secret reform has arrived: What you need to know.
Despite the lack of headlines, the Massachusetts Legislature has continued to move closer and closer toward noncompete and trade secret reform. It now looks potentially imminent. On January 23, 2017, Representative Lori Ehrlich and Senator Will Brownsberger submitted companion bills entitled, “An Act relative to the judicial enforcement of noncompetition agreements.” The House bill (H. 2366) and Senate … Continue reading Quick Update: The rumors of Massachusetts noncompete reform’s death have been greatly exaggerated
The “janitor rule,” as it’s come to be known, is the rule of thumb in restrictive covenant law that if a noncompetition agreement (or other restrictive covenant) restricts the scope of a former employee’s future employment indiscriminately, untethered to the legitimate business interests properly protected by the noncompete, the restriction is overly broad. The test … Continue reading Cleaning up overly broad noncompetes: the “Janitor Rule”
Yesterday, I posted about the bills to ban noncompetes at the federal level: Federal Legislators Propose Noncompete Ban. Only the House bill was available on line; the Senate bill was not. While the Senate bill remains unavailable online, I have the text and am posting it here. Below are some of the key provisions: The prohibition … Continue reading Federal Legislators Propose Noncompete Ban – UPDATE
On April 26, Senators Elizabeth Warren (D-MA), Chris Murphy (D-CT), and Ron Wyden (D-OR) introduced the Workforce Mobility Act to impose a federal ban on the use of employee noncompetes. A companion bill was introduced in the House by Representatives Joseph Crowley (D-NY), Linda Sanchez (D-CA), Mark Pocan (D-WI), Keith Ellison (D-MN), Jerrold Nadler (D-NY), and David Cicilline (D-RI), who have since … Continue reading Federal Legislators Propose Noncompete Ban
On Tuesday, April 17, the Massachusetts legislature’s Joint Committee on Labor and Workforce Development favorably reported H.4419 to the House Steering, Policy and Scheduling. The new bill – which covers both trade secrets and noncompetes – is a compilation of S840, S988, S1017, S1020, H43, H854, H2366 and H2371. Accordingly, much of the language is from bills that we … Continue reading Quick Update: Massachusetts Legislature Reports Out Noncompete Bill
This was a busy week for noncompete laws. Two of the states that have actually made changes to their noncompete laws in the past two years – Idaho and Utah (see Changing Trade Secrets | Noncompete Laws) – are at it again. Idaho has now repealed the law that it adopted in 2016. See Governor vetoes 1 … Continue reading Quick Update: Idaho and Utah Modify Their Noncompete Laws
Proposed legislation banning noncompetes has become de rigueur. Two more states – Vermont and New Hampshire – have introduced noncompete bills in just the past two weeks. Vermont’s bill would ban all employee noncompete agreements following the example set by California in 1872 (yes, 1872 – that is not a typo). Since then, only two others … Continue reading Vermont and New Hampshire Introduce Bills to Limit Noncompetes
Early this year, Pennsylvania joined the bandwagon of states considering modifying their noncompete laws. (For a comprehensive list and on-going updates, see Changing Trade Secrets | Noncompete Laws.) At that time, it was considering relatively modest changes. As of November 27, however, some Pennsylvania legislators have moved to the most extreme position: banning employee noncompetes in … Continue reading Pennsylvania Legislators Propose Noncompete Ban
The New Jersey legislature is considering noncompete reform. The current bill, Senate Bill 3518, largely tracks the concepts – and, in some instances, the language – of the Massachusetts bills that I drafted for Representative Ehrlich and Senator Brownsberger. That said, it certainly does not fully track the Massachusetts noncompete bills, and some of the … Continue reading New Jersey Takes a Page Out of Massachusetts Noncompete Reform Book
Today, the Massachusetts Joint Committee on Labor and Workforce Development held a hearing on the 8 bills involving noncompetes or trade secrets currently pending at the State House. As many of you will remember, this process started in 2009 and has continued in every legislative session since. Last year, the legislative session ended without final agreement … Continue reading Taking AIM at the Hearing on Massachusetts Trade Secrets and Noncompete Bills
In preparation for an upcoming discussion of trade secrets law for PLI in San Francisco (Trade Secrets 2017: What Every Lawyer Should Know), I reran my chart of noncomepte and trade secrets decisions. As regular readers of this blog know, several years ago, I became curious to see how many reported trade secret and noncompete decisions … Continue reading Trade Secret and Noncompete Survey – National Case Graph (Updated 10-29-2017)
It turns out that I missed a few bills! New York: Two identical bills (one in the Assembly (A 6419) and one in the Senate (S 4688)) to adopt the Uniform Trade Secrets Act; and one (S 1204) that provides a procedural mechanism for dealing with information filed under the public officers law that a public … Continue reading More updates to the Changing Noncompete | Trade Secrets Laws Page
For those following noncompete and trade secrets legislative activity around the country, I just updated our Changing Trade Secrets | Noncompete Laws page. (This is a never-ending task with so many states thinking about changing – or actually changing – their noncompete and trade secrets laws, so check back regularly.) The updates to the page include … Continue reading Our Changing Trade Secrets | Noncompete Laws – Updates
Almost nine years in the making, Massachusetts is on the cusp of noncompete reform. And, decades in the making (yes, decades, thanks to Steve Chow‘s extraordinary efforts), Massachusetts is also poised to update its trade secrets laws. On October 31, the Joint Committee on Labor and Workforce Development will hold a hearing on the eight pending … Continue reading Massachusetts Noncompete Reform: What you need to know – by October 31
This is an update to reflect statutory revisions to Texas’ version of its Uniform Trade Secrets Act statute, which will become effective on September 1. For more on the changes, see Texas Updates Its Uniform Trade Secrets Act. The background: Every state but Massachusetts and New York has adopted the Uniform Trade Secrets Act (the UTSA) in one … Continue reading Trade Secrets Laws and the UTSA – A 50 State and Federal Law Survey Chart (updated for Texas)
The BRR 50 State Noncompete Chart has been updated today to reflect a few developments in various states and to make a few tweaks since the last draft. Most significantly, Nevada adopted a brand new noncompete law, effective June 3. That new law not only modified the law generally, but it rejected the Nevada Supreme Court’s recent announcement that … Continue reading 50-State Noncompete Chart Updated
Two important reports on trade secrets protection were recently issued: one by Baker McKenzie and Euromoney Institutional Investor Thought Leadership and the other by the Office of the Intellectual Property Enforcement Coordinator (IPEC). Issued in June, the Baker McKenzie and Euromoney Institutional Investor Thought Leadership report “look[ed] at the rising importance of safeguarding trade secrets during a time … Continue reading New Reports on Trade Secret Theft
Noncompete agreements have for about a decade been the focus of legislative efforts around the country. Some states seek to strengthen enforcement of them, while others seek to scale them back or eliminate them altogether. (For recent developments, see The Changing Landscape of Trade Secrets Laws and Noncompete Laws Around the Country.) While some have have … Continue reading California Trade Secrets Litigation Supplants Noncompete Litigation
On June 3, 2017, Nevada enacted a new law that made significant changes to Nevada noncompete law. Contrary to the recent developments and indications, the new law made enforcement of noncompetes in easier in some ways and in some ways arguably harder. Specifically, the new law provides in relevant part as follows: 1. A noncompetition … Continue reading Nevada Updated Noncompete Law
Please re-subscribe or “re-follow” us. (If you don’t, your notifications of new posts may stop going forward.) Sorry for any inconvenience! After 7 years with blog designs that I have never liked, it was time to make a change. The new design – which is easier to read, search, and scroll through – is rolling … Continue reading Same Blog, Different Look – Questionable Notice
Noncompetes are intended to protect legitimate business interests in appropriate circumstances, including when necessary for the protection of a company’s trade secrets, confidential information, or customer relationships (and sometimes other less-common legitimate interests as well). However, as the White House noncompete working group and many others have recognized, noncompetes are also oftentimes used in inappropriate circumstances, including … Continue reading Recent News on the Abuse of Noncompetes
As more people flowed from to Washington from California than anywhere else in the country (thank you William Molinski and Andrew Arranger of Orrik), Washington has over the past few years introduced various bills relating to noncompetes. None passed. This year may be different. This legislative session, there is a scaled-back bill: HB 1967 (as amended). The bill codifies … Continue reading Washington State’s Efforts to Reform Its Noncompete Laws
On May 19, 2017, Texas passed An Act Relating to the Texas Uniform Trade Secrets Act. The Act defines “clear and convincing” (which is the standard for showing willfulness under the Texas Uniform Trade Secrets Act (UTSA)) and what type of conduct constitutes “willful and malicious misappropriation.” The Act also harmonizes Texas’ UTSA with the Defend Trade Secrets Act (DTSA) language, … Continue reading Texas Updates Its Uniform Trade Secrets Act
As regular readers of this blog know, several years ago, I became curious to see how many reported trade secret / noncompete decisions were issued each year in all federal and state courts around the country. So, I did a “back of the envelope” calculation. I have performed similar calculations every year since. The graph shows three … Continue reading Trade Secret and Noncompete Survey – National Case Graph 2017 (Updated)
Every state but Massachusetts and New York has adopted the Uniform Trade Secrets Act (the UTSA) in one form or another – though some may quibble with whether Alabama or North Carolina actually adopted it. (The Uniform Law Commissioners say that Alabama has adopted it, while North Carolina has not; I view the results as largely the opposite.) … Continue reading Trade Secrets Laws and the UTSA – A 50 State and Federal Law Survey Chart (revised)
The BRR 50 State Noncompete Chart has been updated to reflect a few developments and to make a few tweaks since the last draft. Most significantly, Georgia surprised many (me included) with its decision that the 2011 statuary amendment – which required a constitutional amendment to become effective – did not permit reformation of overly-broad noncompetes. Rather, the United States District Court … Continue reading BRR 50-State Noncompete Chart (Updated Today)
As regular readers of this blog know, several years ago, I became curious to see how many reported trade secret / noncompete decisions were issued each year in all federal and state courts around the country. So, I did a “back of the envelope” calculation. I have performed similar calculations every year since. The graph shows three … Continue reading Trade Secret and Noncompete Survey – National Case Graph 2017
After years of trying (8, to be precise – the first bills were filed, virtually simultaneously as it turned out, by Representative Lori Ehrlich and then-Representative (now Senator) Will Brownsberger for the legislative session starting January 2009), a new noncompete bill was filed on Friday, January 20: An Act relative to the judicial enforcement of noncompetition agreements (Senate Docket No. … Continue reading Massachusetts Noncompete and Trade Secret Reform Returns
Updated 1/26/2016 After years of legal wrangling, Sergey Aleynikov, the former Goldman Sachs engineer who stole high frequency trading code from Goldman Sachs and took it with him for use at Teza Technologies LLC, was finally “re-“convicted according to Bloomberg (and others). You may recall that Aleynikov was first convicted under the Economic Espionage Act (the “EEA”), … Continue reading Aleynikov not-free at last!
Hello all, just a quick note, depending upon where you are located, there are a few upcoming trade secret related presentations that are worth attending. (In the interest of full disclosure: I am involved in all of them – but despite that, the other speakers are all terrific and the content should be great.) The presentations … Continue reading Upcoming Trade Secrets Seminars
Below are the latest issues and cases making trade secrets | noncompete news since our last update. Remember that the Changing Trade Secrets | Noncompete Laws is updated regularly to reflect (in as close to real time as possible) the changes and proposed changes to trade secrets laws and noncompete laws around the country. Also remember that charts reflecting the differences among how … Continue reading Trade Secret | Noncompete Issues and Cases in the News (Year-End Supplement)
The BRR 50 State Noncompete Chart has been updated to reflect several recent state law developments (in particular, limits on physician noncompetes in Connecticut, New Hampshire, and Rhode Island). Click here to get the latest version. Please note that the chart has been revised through today, November 11, 2016. Also, if you are looking for our 50 State Trade Secrets Comparison … Continue reading BRR 50-State Noncompete Chart (Updated 11/11/2016)
Below are the latest issues and cases making trade secrets | noncompete news since our last update. There’s a lot to catch up on (sorry!) … Remember that the Changing Trade Secrets | Noncompete Laws is updated regularly to reflect (in as close to real time as possible) the changes and proposed changes to trade secrets laws and noncompete laws around … Continue reading Trade Secret | Noncompete Issues and Cases in the News (Through November 6)
Earlier today (October 25, 2016), the White House announced a new initiative to spur competition in the labor market. As part of its new initiative, the White House issued a report entitled, “Non-Compete Reform: A Policymaker’s Guide to State Policies,” together with a Call to Action on noncompetes. First the background. Earlier this year, the White House and Treasury Department each released reports (Non-Compete … Continue reading White House Releases Noncompete Call to Action
On August 19, Illinois Governor Rauner signed the Illinois Freedom to Work Act. In short, the Act bans the use of noncompete agreements for low wage workers, i.e., those earning less than the greater of the minimum wage or $13.50/hour. The full text of the act is as follows: Section 1. Short title. This Act may be … Continue reading Illinois Bans Noncompetes for Low Wage Earners
[Chart updated on February 4, 2017] Every state but Massachusetts and New York has adopted the Uniform Trade Secrets Act (the UTSA) in one form or another – though some may quibble with whether Alabama or North Carolina actually adopted it. (The Uniform Law Commissioners say that Alabama has adopted it, while North Carolina has not; I view … Continue reading Trade Secrets Laws and the UTSA – A 50 State and Federal Law Survey Chart
To the surprise of many, the efforts of the Conference Committee to reconcile the House and Senate versions of Massachusetts’ noncompete bill (and bill proposing the adoption of the Uniform Trade Secrets Act) stalled last night – at the end of the current legislative session. The most significant divide was around garden leave requirements (essentially, how much money … Continue reading Massachusetts Noncompete Law Stalls
The BRR 50 State Noncompete Chart has been updated to reflect several recent state law developments. Note that the Massachusetts Legislature is voting today on the pending noncompete (and trade secrets) bills; should that bill be passed in the House and Senate, and signed by Governor Baker (in the next ten days), the chart will be updated … Continue reading BRR 50-State Noncompete Chart (Updated 7/31/2016)
As of last night, Massachusetts has two competing versions of noncompete and trade secrets law reform bills. The House version (H.4434) is described here, and the Senate version (S.2418) (which does not yet reflect the amendments) is described here, with last night’s two amendments summarized here. This post will compare the two bills. In addition, I have compared the two bills in track … Continue reading Lining up the Massachusetts Senate and House Noncompete | UTSA Bills
The Massachusetts Senate voted tonight on Massachusetts trade secrets law and noncompete law reform. Senators proposed multiple amendments to the version of the bill that Senator Mark Montigny, on behalf of the Massachusetts Senate Committee on Rules, recommended on Tuesday. The details of the Rules Committee’s version are in Tuesday’s post: Massachusetts Noncompete Bill Enhanced By Senate. No surprise, the Senate passed the Rules … Continue reading Massachusetts Senate Votes for Tough Noncompete Bill and Adoption of Uniform Trade Secrets Act
The enormous efforts at the State House to reform Massachusetts noncompete law continue. Today, Senator Mark Montigny, on behalf of the Massachusetts Senate Committee on Rules, recommended a revised version of the bill that the House passed – and suggested that it be declared an “emergency law,” meaning that (unlike the House bill which would become … Continue reading Massachusetts Noncompete Bill Enhanced By Senate
Below are the latest issues and cases making trade secrets | noncompete news since our last update … (My apologies to those who received an email update with a draft of this post.) Also, note that the Changing Trade Secrets | Noncompete Laws has been updated, and is regularly updated. Federal (9th Circuit): One of the most-watched decisions involving the … Continue reading Trade Secret | Noncompete Issues and Cases in the News (June/July)
Although I am away (and posting from the Muir Woods – which are quite remarkable), I wanted to post a quick update on the status of the Massachusetts noncompete and UTSA bill. More details later. In the meantime: Unanimous votes in the House: 150 to 0. The Uniform Trade Secrets Act will have the fixes … Continue reading The Massachusetts Noncompete and Trade Secrets Bill Passes House
Below are the latest issues and cases making trade secrets | noncompete news since our last update … Federal: The Defend Trade Secrets Act is now law of the land. The United States now (officially) has a national trade secrets law with a concomitant private civil right of action. For more, see Defend Trade Secrets Act versus the UTSA, Defend Trade … Continue reading Trade Secret | Noncompete – Issues and Cases in the News (May/June)
The Defend Trade Secrets Act (DTSA) is now law of the land, and the United States now (officially) has a national trade secrets law with a concomitant private civil right of action. Specifically, the DTSA amends the Economic Espionage Act to create a private right of action based on the Uniform Trade Secrets Act (UTSA). The UTSA … Continue reading Defend Trade Secrets Act versus the UTSA
I posted yesterday that President Obama had signed the Defend Trade Secrets Act, including a lengthy summary of the bill, it’s history, what it does, and what (I think) it will mean for companies. But, for those who have been following it and working on it for the past several years, I figured you (like … Continue reading President Obama Signs the DTSA (really…)
After 5 years in the making, the Defend Trade Secrets Act of 2016 (the “DTSA”) was signed into law today by President Obama (following a unanimous vote by the Senate (87-0) and nearly unanimous vote by the House (410-2)). The DTSA amends the Economic Espionage Act of 1996 (the “EEA”) in fundamental ways, as described below. (The text … Continue reading Defend Trade Secrets Act and What It Means
Below are the latest issues and cases making trade secrets | noncompete news since our last update … Federal: The president has until Saturday to sign or veto the DTSA. “[D]escribed as the ‘most significant expansion of federal law in intellectual property since the Lanham Act in 1946,’” see Congress May Be About to Shake Up Trade Secret Law: Is … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – May
With trade secret theft growing and showing no sign of stopping, it’s no surprise that there has been bipartisan support for Defend Trade Secrets Act of 2016 (DTSA) – the act that amends the Economic Espionage Act of 1996 to create a federal private right of action for trade secrets misappropriation. Today, Wednesday, April 27, … Continue reading Defend Trade Secrets Act – Awaiting President’s Signature
Updated on 4/20/2016 at 10:48 AM EDT; updated again on 4/26/2016 at 8:25 EDT: As you will recall, on April 4, the Senate voted unanimously to approve the Defend Trade Secrets Act of 2016 (commonly referred to as the “DTSA”), which would create a federal private right of action for the protection of trade secrets. Today, April 20, 2016, … Continue reading Defend Trade Secrets Act – Quick Update
Introduction Trade secrets are frequently the “forgotten” intellectual property. (The indisputably-recognized types of intellectual property are patents, copyrights, and trademarks.) According to some commentators, trade secrets were protected as far back as Roman times through a claim known as “actio servi corrupti” (interpreted roughly as an “action of a corrupted slave”). The existence of a claim for … Continue reading Trade Secrets Law – A Primer
For those looking for a basic primer on Massachusetts noncompete law, I thought I’d provide the following from my book, Negotiating, Drafting, and Enforcing Noncompetition Agreements and Related Restrictive Covenants (5th ed., MCLE, Inc. 2015). (What is reproduced is heavily edited for brevity.) Note that Massachusetts noncompete law is very similar to noncompete laws around the country. … Continue reading Massachusetts Noncompete Law – A Primer
Updated (updates in italic) On March 22, 2016, the Idaho Senate voted 22-13 to pass a bill (H487) to modify Idaho noncompete law. (This follows the March 14 vote by the House to pass the bill 40-27-3.) On March 25, the bill was delivered to the governor. The bill would amend Idaho noncompete law by limiting noncompetes to 18 months, where … Continue reading Idaho Noncompete Reform: Senate Passes Bill
The BRR 50 State Noncompete Chart has been updated to reflect a recent update in Utah law (which will take effect on May 10, 2016). Click here to get the latest version. Please note that the chart has been revised through today, March 25, 2016. Please note that the most current version of both the 50 State Noncompete Chart and 50 state … Continue reading BRR 50-State Noncompete Chart (updated for Utah)
On March 22, 2016, Utah passed the Post-Employment Restrictions Act. Under the Act, all new noncompete agreements executed on or after May 10, 2016, are restricted to one year; any agreement that violates this limit is void. Section 34-51-201. The Act does not operate retroactively (section 34-51-201), nor does it apply to nonsolicitation agreements or nondisclosure agreements (section … Continue reading Utah Noncompete Reform and What it Means
Below is a short supplement to March’s update on issues and cases making trade secrets | noncompete news. The developments are as follows… Federal: The Senate vote on the Defend Trade Secrets Act (S. 1890) is scheduled for April 4. For more, see Changing Trade Secrets | Noncompete Laws. Idaho: On March 17, 2016, the Idaho Senate Committee favorably reported out House Bill 487, a bill … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – March 20 Supplement
On March 10, in R.J. O’Brien & Assoc., LLC v. Williamson, another United States District Court judge in Illinois (Judge Robert Gettleman) weighed in on the controversial Fifield v. Premier Dealer Services, Inc., 993 N.E.2d 938 (Ill. App. Ct. 2013). Fifield (which the Illinois Supreme Court refused to accept on appeal), you may recall, is the Appellate Court … Continue reading Consideration for Noncompetes in Illinois – Another Rejection of Fifield
On March 10 (the last day to do so), the Utah legislature passed the Senate’s amended version of the noncompete reform bill. For details about the bill, see Utah Noncompete Reform: Only Today Left. The bill now awaits action (or in action) by Utah Governor Gary Herbert. The Governor has until March 30 to sign … Continue reading Utah Noncompete Reform: Legislature Passes Bill
With less than a day left, we’re down to the wire on Utah’s consideration of noncompete reform this session. Yesterday, March 9, the Utah Senate made some amendments (see below) to the version from March 8 and sent the amended version to the House. The House concurred with the amendments. Prior to the amendments, the bill limited the maximum … Continue reading Utah Noncompete Reform: Only Today Left
On March 8, as expected, the Utah Senate took up the noncompete bill. However, rather than approve a ban on employee noncompetes (as approved by the House), the Utah Senate approved a bill that would limit the maximum duration of an employee noncompete to one year and, for employers with 20 or more employees, impose legal fees and damages on an employer who sought to … Continue reading Utah Noncompete Reform Update
Below are the latest issues and cases making trade secrets | noncompete news since our last update … Georgia: In February, the Georgia State Senate focused on the intersection between publics records acts requests and trade secrets, introducing a bill to expand the scope of Georgia’s definition of trade secrets, albeit in a very narrow respect. Specifically, the … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – March 2016
Both trade secrets laws and noncompete laws are the product of state law, although at the federal level there is a criminal trade secrets law (the Economic Espionage Act). These laws are in a constant state of flux. Given how hard it can be to stay on top of the recent developments in each state (as well … Continue reading Announcement: The Changing Landscape of Trade Secrets Laws and Noncompete Laws
Massachusetts noncompete reform efforts took a significant step forward today. Massachusetts Speaker of the House Robert DeLeo announced today a very thoughtful proposal for significant changes to Massachusetts noncompete law. The proposal has three parts: An exemption for low income workers. The idea is to ban noncompetes for people who rarely, if ever, should be subject to them – people like sandwich shop … Continue reading Massachusetts Noncompete Law Takes A Significant Step Closer to Change
Below is a short supplement to February’s update on issues and cases making trade secrets | noncompete news. The developments are as follows… Florida: On February 24, Florida’s governor, Rick Scott, signed dual trade secrets enhancement bills (SB 180 and SB 182) into law. The former expressly expands the definition of a trade secret under Florida trade … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – February 28 Supplement
Alabama‘s new so-called “Restrictive Covenant Act,” Ala. Code §§ 8-1-190-197, reproduced below, can be a bit hard to find. (Hat tip to the law firm of Sirote & Permutt, which has a nice summary of the new law here – and which is the only place where one can easily find the (correct) reference to Alabama’s new noncompete law.) … Continue reading Noncompete Law Developments: Alabama
The BRR 50 State Noncompete Chart has been updated to reflect a few developments in statutory or case law since the last draft. Click here to get the latest version. Please note that the chart has been revised through today, February 21, 2016. Please note that the most current version of both the 50 State Noncompete Chart and 50 state and federal … Continue reading BRR 50-State Noncompete Chart (minor updates)
There have been a few issues and cases making trade secrets | noncompete news recently that are worth taking note of if you missed them. They are as follows… Michigan: Republican (yes, Republican) State Representative Peter Lucio of Michigan has introduced a bill that would require that employers who have new employees sign noncompetes must provide advance notice of the terms of the noncompete to the … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – February 2016 Update
Having looked back over the last couple of years, I realized that I have failed to provide enough updates on issues and cases making trade secrets | noncompete news. So, I am going to try to resume those efforts moving forward. Given my earlier IP Year in Review post, this post will be primarily update two of the topics there … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – January Update
In anticpation of speaking at the Boston Bar Association’s 16th Annual Intellectual Property Year in Review earlier this month, with some assistance from several of my colleagues (Nicole Daly, Hannah Joseph, and Will Haddad), I prepared a paper discussing a number of the developments in trade secrets law and noncompete law around the country in 2015. The topics covered in the … Continue reading 2015 Trade Secrets and Noncompetes Year in Review
As regular readers of this blog know, several years ago, I became curious to see how many reported trade secret / noncompete decisions were issued each year in all federal and state courts around the country. So, I did a “back of the envelope” calculation. I have performed similar calculations every year since. The graph shows three … Continue reading Trade Secret and Noncompete Survey – National Case Graph 2016
The BRR 50 State Noncompete Chart has been substantially updated to reflect numerous developments in statutory or case law since the last draft, as well as clarifications of existing laws. Click here to get the latest version. Please note that the chart has been revised through yesterday, August 23. Please note that the most current version of both the 50 State … Continue reading BRR 50-State Noncompete Chart Updated
As of Thursday, August 6, Arkansas noncompete law was statutorily modified by the addition of Ark. Code 4-70-207. With all of the talk about states (like New Hampshire, Hawaii, Massachusetts, Michigan, and Oregon) that have imposed, or are considering imposing, limits (up to an out-right ban) on noncompetes in the employer-employee context, Arkansas has joined the ranks … Continue reading Arkansas Strengthened Its Noncompete Law
Noncompete law is a creature of state regulation. As such, no surprise, we have 50 variations (really 51, when you factor in DC – albeit 3 states (California, Oklahoma, and North Dakota) prohibit employee noncompetes altogether, so it’s more like 48 variations). See BRR’s 50-state summary chart. (Note that the chart is in the process of being … Continue reading Proposed Federal Noncompete Law
More and more studies are being conducted about the impact of noncompetes on the economy, including in particular on startups, employee mobility, and innovation. Two relatively recent studies, suggest some (perhaps) surprising results. The first, Training the Enemy? Firm-Sponsored Training and the Enforcement of Covenants Not to Compete (January 25, 2015), by University of Illinois professor, … Continue reading Noncompete Studies Suggest Noncompete Enforcement Improves Training and Quality of Startups
In anticpation of speaking at the Boston Bar Association’s 15th Annual Intellectual Property Year in Review earlier this month, I prepared a paper discussing a number of the developments in trade secrets law and noncompete law around the country in 2014. Ultimately, I was unable to make it to speak at the event, but my partner, Steve Riden, covered for … Continue reading 2014 Trade Secrets and Noncompetes Year in Review
Several bills concerning trade secrets and noncompetes were filed this week in the Massachusetts legislature. On trade secrets side, the following bills were filed: H.2569 by Representatives Bradley Jones and Elizabeth Poirier; H.2157 by Representative Garrett Bradley; and S.334 by Senator Jason Lewis. The following bills were filed on the noncompete side: H.2332 by Representative Lori Ehrlich … Continue reading Massachusetts Bills to Ban Noncompetes and Adopt UTSA in the New Legislative Session (2015-2016)
As regular readers of this blog know, several years ago, I became curious to see how many reported trade secret / noncompete decisions were issued each year in all federal and state courts around the country. So, I did a “back of the envelope” calculation. I have performed similar calculations every year since. The graph shows three … Continue reading Trade Secret and Noncompete Survey – National Case Graph 2015
The AIPLA Trade Secret Summit is scheduled for Thursday, December 4, and Friday, December 5, at Intel’s headquarters in Santa Clara. You can register here. There will be a great group of speakers covering some of the most important/current topics in trade secret law: Emerging Best Practices for Protecting Trade Secrets in Employment and Business-to-Business Relationships; A Judicial Panel Providing … Continue reading AIPLA Trade Secrets Summit (2014)
It’s that time of year again. With the elections behind us and the next legislative session coming soon, a new version of a proposed Uniform Trade Secrets Act has been filed in Massachusetts. (This version, filed on November 5, 2014, is available here.) This one, like the earlier versions, was filed by Stephen Chow on behalf of the … Continue reading A new proposed trade secrets bill in Massachusetts
In a surprising turn of events last week, Massachusetts Governor Deval Patrick announced that he was reintroducing legislation to modify Masschusetts noncompete law and to adopt a version of the Uniform Trade Secrets Act. The noncompete bill (H. 4401) is the noncompete language that I had drafted for Senator Will Brownsberger and Representative Lori Ehrlich described here (which … Continue reading “I’m not dead yet,” says Massachusetts Noncompete and UTSA Reform
Progress in the Massachusetts State House: On Tuesday, July 1, the latest version of the Massachusetts Noncompete Bill (the latest version of the bill that I had drafted for Senator Will Brownsberger and Representative Lori Ehrlich) has passed the Massachusetts Senate by a vote of 32 to 7. The bill codifies existing noncompete law with several significant changes: (1) … Continue reading Update on Massachusetts Noncompete and Trade Secrets Bills
Tomorrow – Thursday, May 29 at 1:00 PM in room A-1 – the Joint Committee on Economic Development and Emerging Technologies will be holding a public hearing on Governor Patrick’s economic development bill (H.4045). For those of you following this, that is the bill that would adopt a version of the Uniform Trade Secrets Act and … Continue reading Hearing on Governor Patrick’s Economic Development Bill (including MA UTSA and Noncompete Ban)
On April 29, the Massachusetts Legislature’s Joint Committee on Labor and Workforce Development favorably reported out a bill (available here) very close to Governor Patrick’s proposed adoption of a version of the Uniform Trade Secrets Act (“UTSA”) coupled with a ban on noncompetes in Massachusetts. Governor Patrick’s bill is available in whole here or relevant … Continue reading Massachusetts Noncompete Ban and Modified Version of the Uniform Trade Secrets Act Reported Out of Committee
As you likely have seen (here for example), the Patrick Administration has spent a great deal of time putting together comprehensive proposed legislation designed to promote growth and opportunity in Massachusetts. Of particular note has been the Administration’s proposal of the adoption of a version of the Uniform Trade Secrets Act (the “UTSA”) coupled with a … Continue reading What to do if noncompetes are eliminated in Massachusetts
For those interested in the economics and policies behind trade secrets, PricewaterhouseCoopers and The Center for Responsible Enterprise & Trade (CREATe.org) have issued a detailed report on the economic impact of trade secret theft, including a suggested approach to protecting trade secrets (i.e., a trade secret audit). The report, as explained by PwC, “focuses on four issues that are … Continue reading New Trade Secrets Study by PwC and CREATEe.org
This past week, the Boston Bar Association held its 14th annual Intellectual Property Year in Review. I covered trade secrets (including related restrictive covenants). Below is a summary of those developments. (If you would like a complete copy of my materials, click here.) Obama Administration Focuses on Trade Secrets In February 2013, the Obama Administration … Continue reading Trade Secrets and Noncompetes – Year in Review 2013
A few years ago, I became curious to see how many reported trade secret / noncompete decisions were issued each year in all federal and state courts around the country. So, I did a “back of the envelope” calculation. I have performed similar calculations several times since. Over the years, I have varied the graph, … Continue reading Trade Secret and Noncompete Survey – National Case Graph 2014 [Preliminary Data]
I recently (October 23) spoke on a panel at the American Intellectual Property Law Association (AIPLA) Annual Meeting (Washington, D.C.) entitled, “Terra Terror and Traveling Tricks – Developments in Cybersecurity, US and International Trade Secret Law.” My topic was discovery in trade secrets litigation. I prepared a 32 page (single-spaced) paper covering discovery – basically an overview … Continue reading Discovery, Protective Orders, and Spoliation in Trade Secrets Litigation
A few years ago, I became curious to see how many reported trade secret / noncompete decisions were issued each year in all federal and state courts around the country. So, I did a “back of the envelope” calculation. I have performed similar calculations several times since. Over the years, I have varied the graph, … Continue reading Trade Secret Survey – National Case Graph 2013 [Updated]
The BRR 50 State Noncompete Chart has been updated to reflect various changes in statutory or case law, as well as clarifications of existing laws. Click here to get the latest version. Please note that the most current version of both the 50 State Noncompete Chart and 50 state and federal survey chart of trade secret laws can … Continue reading BRR’s 50 State Noncompete Chart UPDATED
It’s not every day that you get quoted in the WSJ – but today was one of those days (so, I can’t resist mentioning it). Here are the details: The article, “Companies Loosen the Handcuffs on Non-Competes,” by The Wall Street Journal’s Management News editor, Joann S. Lublin, appears in the August 12, 2013, online edition of The Wall Street … Continue reading Wall Street Journal on Noncompetes
Last night, we had our 5th Annual Symposium on Employee Non-Compete Agreements, Trade Secrets and Job Creation. Following that discussion, I spoke with Representative Lori Ehrlich about the status of the current version of her and Senator Will Brownsberger’s noncompete bill (described below). Representative Ehrlich told me that the Joint Committee on Labor & Workforce Development (of … Continue reading Massachusetts Noncompete Bill – Hearing Date
UPDATE/CORRECTION (7/17/2013): It turns out that I had been mistaken about this. The various reports that the governor had signed the bill were incorrect. The bill had only made its way to the governor, but he had not signed it. And, he has in fact now vetoed it. So, for the moment at least, Connecticut’s … Continue reading Connecticut Noncompete Law is Not Undergoing Legislative Changes
Last week (on June 20, 2013), Representatives Zoe Lofgren (D-CA), James Sensenbrenner (R-WI), Mike Doyle (D-PA), Yvette Clarke (D-NY), and Jared Polis (D-CO) introduced a new (bipartisan) version of Rep. Lofgren’s prior bill to modify the Computer Fraud and Abuse Act (“CFAA”). The new bill, “Aaron’s Law Act of 2013,” is named for Aaron Swartz (the … Continue reading New Computer Fraud and Abuse Act Bill
In February 2013, the Obama Administration issued Administration Strategy on Mitigating the Theft of U.S. Trade Secrets. Part of that plan included the Administration’s solicitation of public comment. I, like a handful of others (13 of us in total), submitted comments. My summary comments are available here (the PDF at the bottom (and here) has my full … Continue reading Obama Administration Issues New Strategic Plan for Intellectual Property Enforcement
True to the unfortunate limit of 24 hours in a day, my posts continue to written during my vacations. This time, given the extended delay between vacations, and therefore posts on issues and cases making trade secrets | noncompete news, I am posting just some highlights of the past few months. Here we go… Obama … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – April 2013 Update
I am thrilled to announce that I have been given the opportunity to work with two of my favorite (though far more prolific) bloggers, Ken Vanko and John Marsh, to create a brand new podcast: Fairly Competing, a Competition Law Podcast. It is among the first podcasts devoted to trade secrets, restrictive covenants (noncompetes), and … Continue reading Fairly Competing – A New Podcast
There is a new noncompete bill in Massachusetts. (Jump to the end for the details.) It is not yet docketed, however, so I do not have an official version to post at this time. Those following the Massachusetts legislature’s efforts to improve Massachusetts noncompete law will recall that in 2008, then-Representative, now Senator, Will Brownsberger … Continue reading New Massachusetts Noncompete Bill
I am a little late to the party here, but following my post, Economic Espionage Act Bill Passes Senate, But Can Be Improved, about the Senate’s passage of the Theft of Trade Secrets Clarification Act of 2012, President Obama, on December 28, signed the Act into law. So, the good news is that the hole in the Economic … Continue reading Theft of Trade Secrets Clarification Act of 2012 is Law
Many of us have been hopeful that with the deep split in the circuits (the 4th and 9th with their narrow interpretation versus the 1st, 5th, 7th, 11th, with their broad interpretation) on the reach of the Computer Fraud and Abuse Act, the Supreme Court would accept the certiorari petition from the Fourth Ciruit’s decision in WEC Carolina Energy Solutions LLC … Continue reading CFAA: The Wait for the Supreme Court Continues
A few years ago, I became curious to see how many reported trade secret / noncompete decisions were issued each year in all federal and state courts around the country. So, I did a “back of the envelope” calculation. I have performed similar calculations several times since. Over the years, I have varied the graph, … Continue reading Trade Secret and Noncompete Survey – National Case Graph 2013 [Preliminary Data]
I have at least had a chance to read the December 27, 2012 decision of the United States District Court for the Western District of Washington in Amazon.com v. Powers, granting in part and denying in part Amazon’s request for a preliminary injunction against one of its former executives, Daniel Powers. The case involves a … Continue reading Amazon.com v. Powers’s Lessons for Us All
The Economic Espionage Act of 1996, 18 U.S.C. §§ 1831-39, creates two causes of action: (1) under section 1831, to criminalize foreign espionage; and (2) under section 1832, to criminalize the theft of trade secrets. There is no private right of action, which, as you may recall, was the reason that Senator Kohl (Democrat, Wisconsin) … Continue reading Economic Espionage Act Bill Passes Senate, But Can Be Improved
Once again, this installment of “Trade Secret | Noncompete Issues and Cases in the News” is my vacation readings update. There is again a lot here! Enjoy… Federal/Antitrust: In October 2009, Computerworld published an article of mine entitled, “No-poach agreements: A new generation of restriction.” The article discussed a no-poach agreement used by several large high … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – October-November 2012
With some exceptions (most notably California, Oklahoma, and North Dakota) properly-drafted, properly-executed employee noncompete agreements are generally enforceable around the country, as long as, based on the attendant facts, they satisfy the applicable standards. Most often the standards require that the agreement be limited in time (duration of the restriction), space (geographic reach), and scope … Continue reading Unfair Competition Basics… Boundless Noncompete Restrictions
It seems that, lately, each installment of Trade Secret | Noncompete Issues and Cases in the News could be called, “What I read over my vacation.” As was inevitably the case, given the time between posts, there is again a lot here! Enjoy… Please note that there are some things that require action, in particular, in … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – September 2012
A few years ago, I became curious to see how many reported trade secret / noncompete decisions were issued each year. So, I did a “back of the envelope” calculation. I have performed similar calculations several times since. Typically, my calculations were of (1) all reported decisions involving trade secrets, regardless of whether they also involved noncompetes and … Continue reading Trade Secret and Noncompete Survey – National Case Graph 2012
Once again, I am a bit behind on the next installment of Trade Secret | Noncompete Issues and Cases in the News. As a result, there is a lot here! Enjoy… 7th Circuit: The 7th Circuit Court of Appeals issued a decision (Fail-Safe, LLC v. A.O. Smith Corporation) on March 28, 2012 discussing the need to take … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – June 2012
The BRR 50 State Noncompete Chart has been updated (as of April 29, 2012) to reflect an update to Illinois, Montana, Texas, and Wisconsin laws. The Illinois Supreme Court has rejected the controversial notion initially expressed in a 2009 decision from an Illinois appellate court (Sunbelt Rentals, Inc. v. Ehlers, 394 Ill.App.3d 421, 333 Ill.Dec. 791, 915 N.E.2d 862 (2009)) that a … Continue reading BRR’s 50 State Noncompete Survey Updated – Illinois, Montana, Texas, and Wisconsin
It’s time for this month’s Trade Secret | Noncompete Issues and Cases in the News. (This post will be updated over the next week; however, two recent and very important decisions necessitated quick posting.) CFAA: The much-awaited decision from the 9th Circuit (en banc) in US v. Nosal has finally issued. In short, the 9th … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – April 2012
The Maryland legislature has become the first state legislature to pass a bill forbidding employers from demanding – or even asking for – social media (e.g., Facebook, Twitter, LinkedIn) usernames and passwords from employees or prospective employees. See Maryland To Ban Employers From Asking For Facebook, Twitter Passwords; Maryland Bill Bans Employers From Facebook. Other states (Massachusetts, California, Illinois, and … Continue reading Social Media Privacy Bills Around the Country
It’s time for this month’s Trade Secret | Noncompete Issues and Cases in the News. Trade Secrets on the Internet: In the most recent case to address the issue of the effect of trade secrets being available on the Internet, the United States District Court for the Western District of Ohio reasoned as follows: Absent from … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – March 2012
I am a bit behind on the January round-up, so, I’ve included some recent events through today. As with the other roundups, in addition to the brief summaries, you will find links for more in-depth reading on each issue. (These posts cover quite a bit of news, enjoy.) [Updated on February 6, 2012. (Updates are … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – January/early-February 2012
There have been lots of legislative changes in the offing. One of them was New Jersey’s adoption of the Uniform Trade Secrets Act. Well, it is now official. Governor Christie has signed it. That leaves just Massachusetts, New York, and Texas as the only non-UTSA states. For a nice summary of the new law, see … Continue reading New Jersey Adopts Uniform Trade Secrets Act
This year saw not one, but two cases involving allegations of trade secret misappropriation and breach of noncompete agreements by companies typically known for things other than their trade secrets. The first was at the end of September 2011, when Hooters – yes, Hooters – sued a competitor (though not the departing employee, curiously enough) … Continue reading Sex Sells – And It’s A Trade Secret
Like a similar post last month, this post provides a summary of noncompete and trade secret issues and cases that have arisen in the past month or so, but that I have not already addressed in recent posts. In addition to my summary, you will find links for more in-depth reading on each issue. (There’s … Continue reading Trade Secret | Noncompete – Issues and Cases in the News – December 2011
There has been much uncertainty in Massachusetts about whether and under what circumstances a claim under G.L. c. 93A (for those not from Massachusetts, that’s our unfair competition statute, which provides for the recovery of multiple damages and attorneys’ fees) exists against an employee who takes his former employer’s trade secrets to a new venture … Continue reading Massachusetts Trade Secret Protections Are Given Big Boost
This is a quick update on a significant decision issued yesterday … The Illinois Supreme Court has rejected the controversial notion expressed in a 2009 decision from an Illinois appellate court (Sunbelt Rentals, Inc. v. Ehlers) that a court need not consider whether a former employer has a legitimate business interest being protected by the … Continue reading Fair Competition News… Illinois Noncompete Law Clarified
Massachusetts Lawyers Weekly‘s Editorial Advisory Board calls the noncompete bill pending in the MA legislature “a step in the right direction.” (As the lead drafter and advisor on the bill, I have covered it extensively throughout this blog and elsewhere; for a summary of the bill, see Massachusetts Noncompete Bill Refiled; for the latest update, … Continue reading Mass Lawyers Weekly Advisory Board Supports Noncompete Bill
About two years ago, my partner Steve Riden and I wrote a blog post on my old blog (the Trade Secrets / Noncompete Blog) entitled, Back to the Basics… The Computer Fraud and Abuse Act. The post was a brief summary of the Computer Fraud and Abuse Act (18 U.S.C. § 1030), which was really designed to protect … Continue reading More Federal Protections For Trade Secrets?
This post provides a summary of noncompete and trade secret issues and cases that have arisen in the past month or so, but that I have not already addressed in recent posts. In addition to my summary, you will find links for more in-depth reading on each issue. (There’s a lot here, enjoy.) UPDATED November … Continue reading Trade Secret | Noncompete – Issues and Cases in the News
Your employee markets your company through Twitter, Facebook, LinkedIn, and YouTube. The employee develops – as he or she is asked to do – a substantial network. Later, your employee leaves. Who owns those accounts? Two recent decisions discuss these very questions. For the non-lawyer readers of this blog, here’s the point: (1) the accounts … Continue reading Employers May Own Employee’s Social Media Accounts: Twitter, Facebook, LinkedIn, and YouTube
About a year a a half ago, I was curious to see how many actual reported trade secret / noncompete decisions were issued each year. So, I did a “back of the envelope” calculation. The results are here (with more information here) and they show an upward trend in the number of cases involving trade secrets … Continue reading Trade Secret and Noncompete Survey – National Case Graph
This post relates to the procedural practice of law (litigation, really). Although not specific to “Unfair Competition,” it is particularly relevant to these issues, given the frequent comparison of California’s restrictive covenant laws (and seemingly-resultant increase in trade secret litigation) to most of the rest of the country. I received the email below. I think … Continue reading Multijurisdictional Practice
Unlike patents, trademarks, and copyright, there is no federal trade secret statute. Instead, each of the 50 states has its own laws. And, although most of states have adopted some version of the Uniform Trade Secrets Act (only Massachusetts, New Jersey, New York, North Carolina, and Texas have not, although New Jersey seems to be … Continue reading A Federal Trade Secret Act?
Earlier today (September 15), the Massachusetts legislature’s Joint Committee on Labor and Workforce Development took testimony on the pending bills to reform Massachusetts noncompete law: two to ban employee noncompete agreements (House Bill 2296 and Senate Bill 932) and the other (House Bill 2293) to codify, clarify, and improve the existing complicated and unpredictable common … Continue reading Report on Massachusetts Legislature’s Hearing on Noncompete Bill
There are basically four types of intellectual property: patents, copyrights, trademarks, and trade secrets. Here is a very brief summary of each: A patent is the right “to exclude others from making, using, offering for sale, or selling the invention throughout the [particular country by which the patent is granted] or importing the invention into [that … Continue reading IP Law in 60 Seconds
The Joint Committee on Labor & Workforce Development has officially announced that it will be conducting a hearing on, among other things, the Massachusetts noncompete bill on September 15. The hearing starts at 10:30 in Room A-1. The bill (i.e., the bill that Representatives Lori Ehrlich, Will Brownsberger, and Alice Peisch have sponsored, and of which … Continue reading Hearing on MA Noncompete Bill
The United States District Court for the District of New Jersey recently issued a decision (Syncsort Incorporated v. Innovative Routines, International, Inc.) providing one more piece in the puzzle of how courts are likely to treat trade secrets that have been published briefly on the Internet. In short, the court adopted a rule of reason, … Continue reading Trade Secrets on the Internet
This year, we have seen several dramatic changes to noncompete laws around the country. The following are some of the highlights: California: Many people thought noncompetes were DOA with the California Supreme Court’s 2008 Edwards v. Arthur Andersen decision. However, the decision (footnote 4) did expressly leave open the question of whether noncompetes could be used … Continue reading Recent Changes in Noncompete Law Around the Country
As those of you following the Massachusetts noncompete bill will recall, a modified version of the bill was refiled in January. (See Massachusetts Noncompete Bill Refiled.) Although the refiled bill reflects significant changes based on input received previously, Representative Lori Ehrlich, Representative Will Brownsberger, and Representative Alice Peisch continue to solicit input on the bill. If you have … Continue reading Massachusetts Noncompete Bill Status Update
The BRR 50 State Noncompete Chart has been updated today (June 26, 2011) to reflect an update to Colorado and Texas laws. Both changes reflect significant developments in the respective state’s laws regarding the consideration necessary to support a noncompete. In Colorado, mid-employment noncompetes can now be supported by continued employment. In Texas, a noncompete can now be … Continue reading BRR’s 50 State Noncompete Survey Updated – Colorado & Texas
The central component of Texas noncompete law that separated it from the pack is that the consideration needed to support a noncompete had to be related to the legitimate business interest sought to be protected by the noncompete. As stated by the Texas Supreme Court in 1994, in Light v. Centel Cellular Co. of Texas, 883 … Continue reading Texas Overhauls Noncompete Law
While everyone else gets their information by googling it, how does Google get its information? Well, according to Pay Pal, it steals it. Just two days ago (Friday, May 27, 2011 – for those reading this some other time), Google (in conjunction with MasterCard, Citigroup, Sprint, and First Data) announced a new service by which … Continue reading “Google this!,” says PayPal
Big happenings in France (well… in the world of noncompetes, anyway). In France, noncompetes arising our of an employment relationship are similar to those in other European countries that enforce noncompetes. They must be limited in time, space, and scope; necessary to protect a legitimate business interest; and supported by consideration (generally, a significant percentage of … Continue reading Shareholder Noncompetes in France
After months of confusion, it is now official: Georgia has a new – and valid – noncompete law. The law will apply only to noncompete agreements entered into on or after May 11, 2011, and will permit Georgia courts to reform overly broad noncompete agreements to make them more reasonable, and therefore enforceable. (Previously, the … Continue reading Georgia Noncompete Statute At Last
The BRR 50 State Noncompete Chart has been updated today (April 12, 2011) to reflect an update to South Carolina’s handling of overly broad restrictions. Specifically, the South Carolina Supreme Court has expressly rejected “rewriting or ‘blue-penciling’ . . . territorial restriction[s].” Poynter Inves., Inc. v. Century Builders of Piedmont, Inc., 387 S.C. 583, 587 (2010). The … Continue reading BRR’s 50 State Noncompete Chart Updated – South Carolina
Recognizing the need to crack down on misappropriation of trade secrets, the Department of Justice (DOJ) has stepped up its enforcement of the Economic Espionage Act, among other statutes. See the DOJ’s IP Task Force announcement and a post at my prior law firm’s Trade Secret / Noncompete Blog. Presumably motivated by the same concerns, several US … Continue reading Economic Espionage Act Update
Hairdressers have been held out as a prime example why noncompete reform is required in Massachusetts. Whenever the hairdressers are rolled out, however, those opposed to reform contend that courts “never issue injunctions against hairdressers.” The inaccuracy of that contention is once again squarely demonstrated in a recent Massachusetts Superior Court decision: Zona Corp. v. … Continue reading Hairdresser Takes a Haircut
Today’s headlines provided an interesting twist on the intersection between trade secret law and sunshine (or “freedom of information”) laws. See UConn Fights to Keep Donor List Secret. Typically, the issue of what confidential information in the hands of government bodies is available to the public arises from the potential disclosure of private information belonging to … Continue reading Public Trade Secrets?
As we all know, trade secret litigation has been steadily on the rise for the past decade. (See The Who, What, Where, When, How, and Why of Trade Secret Audits and, in the related area of noncompetes, Noncompete cases not slowed by economy, legislation.) As we also know, the government has increased its enforcement efforts … Continue reading Trade Secret Theft: The China Syndrome
For those of you interested in seeing a copy of the Massachusetts noncompete bill as it was filed, click here or on the image to the right. Remember that the goal of the Representatives sponsoring the bill is to get as much input as possible, so that people’s concerns can be considered as part of the … Continue reading Massachusetts Noncompete Bill Now Available
The bill in Massachusetts to codify, clarify, and modernize Massachusetts law relative to employee noncompetition agreements was re-filed today, with several significant changes from the prior version. A copy will be available shortly (check back or see below). Here is a summary: (1) The bill, if enacted, will not apply retroactively (i.e., it would apply … Continue reading Massachusetts Noncompete Bill Refiled
While most people think of noncompete agreements as the traditional, “you can’t work there” type, there is another type of agreement that can create financial incentives so great that, as a practical matter, they have substantially the same effect. They are known as forfeiture-for-competition agreements. Typically, forfeiture-for-competition agreements impose a penalty for working for a … Continue reading Unfair Competition Basics: Forfeiture-for-Competition
This post is a bit unusual for me. It is not about substantive law. It’s not about Fair Competition Law issues in the news. It’s not even my own analysis. Rather, it is a list – by a different blog (The Delaware Employment Law Blog) of the top 100 employment law blogs. The reason that … Continue reading Top 100 Law Blogs
We spend lots of time on this blog discussing trade secret protection. To give some context, I thought it might be helpful to have a few statistics: Trade secret and related noncompete cases have more than doubled over the past decade, according to my admittedly-unscientific “back-of-the-envelope” calculation. See here (including imbedded links). Data theft costs … Continue reading Trade Secret Statistics
The BRR 50 State Noncompete Chart has been updated today (December 7, 2010) to reflect a clarification of Wisconsin’s rule on dealing with overly broad noncompete agreements. Click here to get the latest version. Please note that the most current version of both the 50 State Noncompete Chart and 50 state and federal … Continue reading BRR’s 50 State Noncompete Chart Updated Today – Wisconsin
Hank Mullany, former president of Walmart‘s northern U.S. division, reportedly left Walmart to head up CVS‘s retail pharmacy. In response, Walmart sued Mullany (Wal-Mart Stores Inc. v. Mullany, CA No 6040, Delaware Chancery Court (Wilmington) (a copy of the complaint is here) claiming that Mr. Mullany had a noncompete agreement that prevented him from working … Continue reading Fair Competition News: Save Money. Live Better. But Don’t Go To Work For CVS, Says Walmart
Pfizer reportedly sold $11.4 billion – yes, billion with a “b” – of cholesterol-lowing drug, Lipitor, last year and is reportedly on track to sell another $13 billion this year. See here. So, what’s the problem? The problem is that Pfizer’s exclusive right to manufacture and sell Lipitor derives from a patent, and patents that cover … Continue reading Unfair Competition Basics: Who Wants to Live Forever? Patents vs. Trade Secrets
We need your help… We are pleased to announce that we were selected by the ABA for inclusion in its top 100 Blawgs. The list was compiled by the editors based on their personal favorites. Now, from that group, they will select the top blog in each of the categories. That selection will be made … Continue reading ABA Top 100 Blawgs – We made it!
For those interested in the status of and plans for the Massachusetts noncompete bill or Massachusetts noncompete law more generally, there are two up-coming discussions you may wish to attend. The first will be at the Boston Bar Association on Thursday, December 2, at 12:00. The topic is Non-Compete Q and A: Discussing the Proposal to Endorse House Bill … Continue reading Noncompete Updates
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 … Continue reading Trade Secret Protocols Not Followed: Wikileaks
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 … Continue reading Social Media is Not Social “Security”
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 … Continue reading How can we help?
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 … Continue reading Georgia Update
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 … Continue reading Urban (Trade Secret) Legends Debunked
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. Please note that … Continue reading 50 State Noncompete Survey Chart Updated
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 … Continue reading Georgia Noncompete Law Changed!
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 … Continue reading Tell Us
There is a latin maxim, “Gladiator in arena consilium capit.” Translation: “The gladiator is formulating his plan in the arena.” (I thank my boys, the latin scholars, for introducing me to the maxim.) The meaning of the maxim is that if you wait to formulate your plan until you’re about to enter battle, you are … Continue reading Which Gladiator Are You?
When an employee is bound by a noncompetition agreement, it is rare for the noncompete to be the exclusive restriction on the employee’s post-employment conduct. Rather, noncompetition agreements are generally accompanied by nonsolicitation and confidentiality agreements (among other things). When there are multiple restrictions on the employee, the former employer may be adequately protected by the … Continue reading The Dual Effect of Multiple Restrictive Covenants
Many years ago (1997, I think), I wrote an article about email privacy in the workplace. Given the recent debate following City of Ontario v. Quon (see my prior post, So, Can Your Employees Sext At Work?), I thought it worth posting my earlier article (with an added nod to Snopes.com), as it is as … Continue reading Pretty Bad Privacy: Email in the Workplace
The perennial issue of the extent of privacy rights in the workplace — in particular, what right the employer has to review private messages (including sexually-explict text messages, see “sexting“) sent using company-owned equipment — was finally supposed to be answered by the much-anticipated Supreme Court decision in City of Ontario v. Quon. Without getting … Continue reading So, Can Your Employees Sext At Work?
The utility of a 50 state survey on noncompetes has come up at various points. So, I finally took it upon myself to create one and make it publicly available. The chart is a summary of employee noncompetition laws and applicable standards throughout the country. The chart covers the following: Whether noncompete agreements are permitted … Continue reading BRR 50 State Noncompete Survey
In October 2009, Computerworld published an article of mine entitled, “No-poach agreements: A new generation of restriction.” The article discussed a no-poach agreement used by several large high tech companies through which the companies (Adobe Systems, Inc., Apple Inc., Google Inc., Intel Corp., Intuit Inc. and Pixar) agreed not to solicit the other’s employees. Although … Continue reading The “New No-Poach Agreement” is No More… Sort Of
Rule 5.6 of the Rules of Professional Conduct (the rule prohibiting lawyers from being bound by noncompetes) and its analogue in the Canons of Ethics (DR 2-108(A)) have a noble purpose: the protection of client choice –not protection of the lawyer. The dirty little secret, however, is that lawyers can be bound by a noncompete … Continue reading Leave it to the Lawyers: Noncompetes at “Retirement”
Well, I guess it’s not such a bad thing that my last post was about the HP/Oracle/Hurd dispute, as there’s more to report. It’s settled. No surprise there; most of these cases do settle – and settle quickly. You didn’t need an Oracle to predict this outcome. (Sorry!) The settlement occurred this week, and its terms are confidential. But, Hurd has reportedly waived … Continue reading No Oracle Necessary
Bad pun aside, Hewlett-Packard has sued its former CEO, Mark Hurd, who left HP last month and reportedly just joined Oracle as its new co-president. (A copy of the complaint if available here.) Not surprisingly, HP is claiming that Hurd knows so much of HP’s confidential information that allowing him to work for Oracle – … Continue reading Is Oracle Going To Be “Hurding”?
There is an endless variety of types of trade secrets and confidential information. (On the question of the significance of the distinction, see Trade Secret or Confidential Information?, posted on June 4, 2010.) At their core, trade secrets and confidential information are any secret information. They may include customer and vendor information, products, product development, business strategy, financial … Continue reading Unfair Competition Basics: Terms of Art … What is a Trade Secret?
When drafting restrictive covenants, including especially noncompetes and nonsolicitation agreements, companies should consider including a liquidated damages provision. Before the guffaws start, note that this only makes sense in jurisdictions, like Massachusetts, where the specification of monetary damages does not of itself affect entitlement to injunctive relief. However, in those states where injunctive relief is … Continue reading Liquidated Damages in Restrictive Covenants
Personal data is shared in myriad ways, some obvious, others not so much. If you’re an avid photographer, you probably know about geotags. But, if you’re a casual photographer, you might not. And, except for the truly tech-savvy, you may not even realize what information you’re sharing, and when you’re sharing it. Photographs taken with … Continue reading Did you really mean to tell people where you are – and where you are not?!
You may recall that in February, a senior executive from Bimbo Bakeries USA, Inc. (“Bimbo”) – maker of, among other things, Thomas’ English Muffins – went to work for a competitor. The executive, Chris Botticella, was one of only a few people in the world with knowledge of how the secret behind the famous “nooks … Continue reading The Muffin Man Returns – And So Does Inevitable Disclosure
Although the Massachusetts noncompete bill had made substantial progress since its introduction, many more pressing issues in need of urgent legislative attention took priority, leaving the bill stalled toward the end of the legislative session (ending today, July 31). It is thus now fair to report with certainty that the bill is dead for this legislative session. … Continue reading MA Noncompete Bill Deferred to Next Year
Trademark law is designed primarily to prevent consumer confusion with respect to the identification of the source of goods products. As a general rule, any word, symbol, or combination of words and symbols used to identify the source of goods or products in commerce can potentially be protected under federal trademark law (the Lanham Act). … Continue reading Unfair Competition Basics: Mark My Words… Trademark Basics
For those interested in the current status on the pending legislation to reform noncompete law in Massachusetts, the Boston Bar Association will be hosting a symposium on noncompete reform. The panelists will discuss the current law, proposed changes, and the policy behind each, after which the panel will open the floor to a questions and … Continue reading Employee Non-Compete Agreements and Job Creation: The Status of Law Reform a Year Later
eBay has reportedly been sued by EPRT Ventures for $3.8 million. The claim appears to be not only that eBay supposedly infringes on certain patents, but that eBay misappropriated trade secrets disclosed to it on a purportedly confidential basis. The lawsuit is pending in the United States District Court for the District of Delaware. Read … Continue reading eBay Accused of Stealing Trade Secrets
You are planning to terminate an employee or you have an employee who is in the process of resigning – or has already resigned. The employee is not subject to a noncompete, or maybe there is some question about the enforceability of his noncompete. Can you bind the employee to a noncompete? In a word … Continue reading Post-Employment Noncompetes?
Each time a new technology rolls out, legal decisions follow. Social media is the latest. Remember the cyberstalker? How about Facebook’s lawsuit against Power.com? Or the class action against Facebook over its privacy settings? The latest twist involves a case filed in the United States District Court for the District of Minnesota, TEKsystems, Inc. v. Hammernick, No 0:10-cv-0081. It … Continue reading Social Media, the New World?
Lawsuits over trade secrets typically involve things like customer lists, formulas, manufacturing processes, etc. Can the location of houses for use as movie sets be a trade secret? Yep. Well, at least that’s the claim made by a company in Hollywood. (Here’s an article about it from Reuters: Trade-secret war over Hollywood set locations.) We’ll … Continue reading Trade Secrets Hollywood Style
Exactly one year ago, I wrote a post entitled “An Ounce of Prevention… ” for my prior law firm’s Trade Secret / Noncompete Blog (which I had created only days earlier). In the post, I recommended and discussed performing a trade secret audit. Here’s the who, what, where, when, how, and why – but not in that … Continue reading The Who, What, Where, When, How, and Why of Trade Secret Audits