Trade Secrets and Competition

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Everybody who cares probably knows that, in California, covenants not to compete (agreements that restrain an individual from pursuing a lawful trade of profession) are generally unenforceable.  There are only five “exceptions” to this rule.  I put “exceptions” in quotes because two of them really aren’t exceptions at all. They are independent legal doctrines that…

The Cruel Lessons of Wanke, Industrial, Commercial, Residential, Inc. v. Keck  (2012) 209 Cal.App.4th 1151

By:      Charles L. Post

Defendants in trade secret and unfair competition cases often have fewer resources than the plaintiff companies that bring them.  This is often the case in “classic” trade secret misappropriation scenarios: former employees form a new…

Courts are reluctant to protect customer lists when they consist of information from public sources (such as business directories).  (Morelife, Inc. v. Perry (1997) 56 Cal.App.4th 1514, 1521-1527.)  On the other hand, where the employer has expended time and effort identifying customers with particular needs or characteristics, courts will prohibit former employees from…

When one or more of your key employees leaves to join a competitor and begins soliciting your customers, one of your strongest weapons under California’s trade secret laws is the ability to obtain an immediate temporary restraining order to stop your former employee and his or new employer from unlawfully competing against you.  Many trade…

By: James Kachmar

When one or more of your key employees leaves to join a competitor and begins soliciting your customers, one of your strongest weapons under California’s trade secret laws is the ability to obtain an immediate temporary restraining order to stop your former employee and his or new employer from unlawfully competing against you. Many trade secrets cases can be won or lost at the early TRO/preliminary injunction stage. However, it is imperative that employers act fast to protect their rights or they may find that their trade secret case is weakened. Employers may, when faced with departing employees who are soliciting their customers, take a wait and see approach to determine the amount of damage and whether it is worthwhile to hire an attorney to pursue the matter in the court system. While this may make sense from a business approach, it can adversely impact the employer’s remedies should it eventually decide to pursue a lawsuit.Continue Reading Employers: Act Fast or Weaken Your Trade Secret Case