WHITE PAPER | 2023 Mid-Year Review: Key Trade Secret Developments

A trade secret is any information used in one’s business that derives independent economic value from not being generally known. Trade secrets, unlike patents, are protected indefinitely for as long as they remain a secret. Due in large part to enactment of the Defend Trade Secrets Act in May 2016 which made trade secret misappropriation a federal cause of action, trade secrets have become an increasingly attractive form of intellectual property for businesses to protect their innovations.

This White Paper summarizes and explains recent noteworthy decisions in trade secret law. Each of these decisions has meaningful implications for trade secret owners, defendants and practitioners alike.

Contents

• DISTRICT COURT SETS ASIDE $64 MILLION JURY VERDICT BECAUSE TRADE SECRETS WERE INDEFINITE OR NOT “SECRET”
  • Coda Dev. s.r.o. v. Goodyear Tire & Rubber Co., No. 15-cv-1572 (N.D. Ohio Mar. 31, 2023)
• COURT DENIED TRO AGAINST EX-EMPLOYEES FOR TAKING CUSTOMER LISTS
  • Dental Health Services v. Miller, No. 23-cv-00383 (W.D. Wash. Apr. 6, 2023)
• FOURTH CIRCUIT FINDS A CONDITIONAL COVENANT-NOT-TO-SUE INSUFFICIENT TO MOOT A DECLARATORY JUDGMENT ACTION
  • Synopsys, Inc. v. Risk Based Security, Inc., 70 F.4th 759 (4th Cir. 2023)
• BUILDING SUPPLY DISTRIBUTOR WINS PARTIAL PRELIMINARY INJUNCTION AGAINST RIVAL’S USE OF VENDOR DISCOUNT INFORMATION
  • Foundation Building Materials, LLC v. Conking & Calabrese, Co., 2023-NCBC-46, 2023 WL 4561583 (N.C. Super. Ct. 2023)
• SECOND CIRCUIT OVERTURNS $284 MILLION UNJUST ENRICHMENT JURY VERDICT
  • Syntel Sterling Best Shores Mauritius Limited v. TriZetto Group, 68 F.4th 792 (2d Cir. 2023).
• EIGHTH CIRCUIT RULES THAT IN SOME CIRCUMSTANCES, IT IS SUFFICENT TO PLEAD TRADE SECRET MISAPPROPRIATION ON INFORMATION-AND-BELIEF
  • Ahern Rentals, Inc. v. EquipmentShare.com, Inc., 59 F.4th 948 (8th Cir. 2023)

Special thanks to contributing author and Smith Anderson summer associate, Ken Chu.  

Read the White Paper here.