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Trade Secrets: A Practitioner's Guide (2nd Edition)
 by Henry H. Perritt, Jr.
 
 Copyright: 2005-2012
 Last Updated: June 2012

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  • ISBN Number: 1402406428
  • Page Count: 860
  • Number of Volumes: 1
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  • The purchase of PLI titles may include Basic Upkeep Service, whereby
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Trade secrets are a vital part of an intellectual property portfolio that can give a company a decisive competitive advantage in the marketplace.

PLI’s Trade Secrets: A Practitioner’s Guide can be a vital weapon in an attorney’s arsenal, providing the legal knowledge and practical instruction needed to protect clients’ trade secrets. In clear, direct terms, this authoritative, accessible guide spells out what a trade secret is, how it should be protected, and what to do when its secrecy is compromised.

Trade Secrets defines what trade secret misappropriation is, how you can prove it in court, how you can protect trade secret information during the course of litigation, and how you can gain appropriate legal and monetary remedies for clients when violations are proven. At the same time, Trade Secrets shows you how to apply the full range of available defenses against misappropriation claims. Included are timesaving sample forms, proactive checklists, and instructive trial testimony from actual cases.

Updated at least once a year, Trade Secrets: A Practitioner’s Guide is an essential tool for trade secret specialists and other intellectual property attorneys, corporate counsel and executives, scientists, engineers, business leaders, and generalists representing clients on trade secret matters.

Chapter 1: Introduction
  • § 1:1 : Overview of the Book1-1
  • § 1:2 : Basic Elements of the Tort1-3
    • § 1:2.1 : Trade Secret1-4
    • § 1:2.2 : Misappropriation1-5
  • § 1:3 : Contractual Protection for Trade Secrets1-6
  • § 1:4 : The Property View Versus the Tort View of Trade Secrets1-7
  • § 1:5 : Sources of Law1-10
    • § 1:5.1 : Uniform Trade Secrets Act1-10
    • § 1:5.2 : Restatement (Third) of Unfair Competition1-14
    • § 1:5.3 : Restatement of Torts1-15
    • § 1:5.4 : State Statutory Preemption of Common Law1-16
  • § 1:6 : Federal Law1-21
    • § 1:6.1 : Analogies to Other Types of Intellectual Property Protection1-21
    • § 1:6.2 : Policy1-22
  • § 1:7 : Historical Development1-23
  • § 1:8 : Trends1-30
  • § 1:9 : Insurance1-31
  • § 1:10 : Checklist for Potential Plaintiffs and Owners of Trade Secrets1-31
    • § 1:10.1 : Preventive Measures1-31
    • § 1:10.2 : Litigation Checklist1-33
  • § 1:11 : Checklist for Potential Defendants1-35
Chapter 2: Other Protections for Innovation, Information and Know-How
  • § 2:1 : Introduction and Overview2-2
  • § 2:2 : The Bundle of Rights2-5
  • § 2:3 : Patent2-10
    • § 2:3.1 : Patent Application Disclosure2-17
    • § 2:3.2 : Business Methods Patents2-18
    • § 2:3.3 : Patent Reform2-21
  • § 2:4 : Copyright2-25
    • § 2:4.1 : Originality: Facts Not Eligible for Copyright2-27
    • § 2:4.2 : Limited Protection2-28
      • [A] : Musical Work or Sound Recording?2-32
      • [B] : Privileges and Defenses2-33
    • § 2:4.3 : Derivative Works2-35
    • § 2:4.4 : Indirect or Secondary Infringement2-37
    • § 2:4.5 : Digital Millennium Copyright Act2-44
      • [A] : Defeating Technological Protection2-44
      • [B] : Safe Harbor for Intermediaries2-44
    • § 2:4.6 : Collective Licensing2-55
    • § 2:4.7 : Statutory Damages2-57
    • § 2:4.8 : Injunctions2-58
  • § 2:5 : General Misappropriation Tort2-59
  • § 2:6 : Unfair Competition2-64
  • § 2:7 : Trademark2-65
    • § 2:7.1 : Dilution of Famous Marks2-74
    • § 2:7.2 : Internet Domain Names and Trademarks2-75
  • § 2:8 : Constitutional Limits on Intellectual Property2-80
  • § 2:9 : Preemption by Federal Law2-81
  • § 2:10 : Coexistence2-81
  • § 2:11 : Intentional Interference with Contractual Relations2-87
    • § 2:11.1 : Defamation2-87
    • § 2:11.2 : Computer Fraud and Abuse Act2-87
    • § 2:11.3 : Electronic Communications Privacy Act2-92
  • § 2:12 : RICO2-92
Chapter 3: Subject Matter of Trade Secrets
  • § 3:1 : Introduction and Overview3-2
  • § 3:2 : Restatement Definition3-3
  • § 3:3 : Uniform Act Provisions3-4
  • § 3:4 : Question of Fact or of Law?3-6
  • § 3:5 : Comparison with the Subject Matter of Other Types of Intellectual Property3-7
    • § 3:5.1 : Copyright3-7
    • § 3:5.2 : Patent3-8
  • § 3:6 : Know-How Distinguished3-8
  • § 3:7 : “Used in Plaintiff’s Business” Requirement3-11
  • § 3:8 : Nonbusiness Information3-14
  • § 3:9 : Specific Subjects3-18
    • § 3:9.1 : Production and Operations3-19
      • [A] : Manufacturing Process3-19
      • [B] : Information about Clients, Customers, or Patients3-22
      • [C] : Product Design3-23
      • [D] : Product Formulas3-25
      • [E] : Information for Production Versus Information As Product3-26
      • [F] : Business Methods3-28
    • § 3:9.2 : Engineering and Research and Development3-28
      • [A] : Reverse Engineering3-29
      • [B] : Safety and Health Effects3-29
    • § 3:9.3 : Marketing3-30
      • [A] : Generally3-30
      • [B] : Opinion Survey Questions3-32
      • [C] : Wholesaling Methods3-32
      • [D] : Marketing Strategies3-33
      • [E] : Customer Lists3-33
      • [F] : Customer Pricing3-38
      • [G] : Contract Renewal Dates3-39
    • § 3:9.4 : Finance and Strategic Business Plans3-40
    • § 3:9.5 : Purchasing Information3-42
    • § 3:9.6 : Management Techniques and Organization Design3-42
  • § 3:10 : Legal Information3-43
  • § 3:11 : Religious Materials3-43
  • § 3:12 : Memorized Information3-44
  • § 3:13 : Employee Information3-46
  • § 3:14 : Educational Tests3-46
Chapter 4: Secrecy
  • § 4:1 : Introduction and Overview4-2
  • § 4:2 : Relationship to Subject Matter Elements4-4
  • § 4:3 : Relationship to Wrongful Acquisition Elements4-4
  • § 4:4 : Coexistence with Copyright4-5
  • § 4:5 : Coexistence with Patents4-5
  • § 4:6 : Absolute Secrecy Not Required4-6
  • § 4:7 : Mass Marketing4-8
  • § 4:8 : Relationship to Breach of Confidentiality Agreements4-9
  • § 4:9 : Secrecy Ended by Disclosure4-9
    • § 4:9.1 : Wrongful Disclosure4-9
    • § 4:9.2 : Disclosure by Licensee: Is Secrecy Destroyed?4-10
    • § 4:9.3 : Revealed Through Patents4-11
    • § 4:9.4 : Revealed in Copyright Registration4-15
    • § 4:9.5 : Revealed to the Government4-15
    • § 4:9.6 : Revealed Through the General Media4-17
    • § 4:9.7 : Required to Be Disclosed by Regulation4-19
    • § 4:9.8 : Discovered Through Accidental Disclosure4-20
    • § 4:9.9 : Revealed by Product4-21
  • § 4:10 : Known to Industry4-21
  • § 4:11 : Secret Compilations of Generally Known Facts4-22
  • § 4:12 : Not Known but Readily Ascertainable4-23
  • § 4:13 : Security Measures4-26
    • § 4:13.1 : Proprietary Notices4-27
    • § 4:13.2 : Excessive Claims of Secrecy4-30
    • § 4:13.3 : Confidentiality Agreements4-31
      • [A] : Employees4-31
      • [B] : Customers and Suppliers4-34
      • [C] : Confidentiality Agreement Language4-38
    • § 4:13.4 : Restricting Access4-40
  • § 4:14 : Testimony Establishing Secrecy4-45
Chapter 5: Competitive Advantage, Novelty, and Investment
  • § 5:1 : Summary and Overview5-1
  • § 5:2 : Relationship to Other Forms of Intellectual Property5-2
  • § 5:3 : Uniform Act and Restatement Requirements5-3
  • § 5:4 : Relationship to Subject Matter5-4
  • § 5:5 : Relationship to Secrecy Requirement5-6
  • § 5:6 : Novelty5-6
  • § 5:7 : The Relevant Market5-13
  • § 5:8 : Investment5-14
  • § 5:9 : Exclusion of Intellectual Capital Embodied in Employees5-17
  • § 5:10 : Testimony Establishing Competitive Advantage5-18
Chapter 6: Wrongful Use: Special Relationships
  • § 6:1 : Introduction and Overview6-2
  • § 6:2 : Uniform Trade Secret Act and Restatement6-2
  • § 6:3 : Fiduciaries and Trustees6-4
  • § 6:4 : Comparison with Other Legal Relationships6-6
    • § 6:4.1 : Other Contractual Relationships6-6
    • § 6:4.2 : Other Special Relationships in Tort6-7
  • § 6:5 : Establishment of Relationship6-9
    • § 6:5.1 : Creation Through Express Contract6-9
      • [A] : Requirements6-9
      • [B] : Model Language6-12
      • [C] : Work Made for Hire Agreements6-17
    • § 6:5.2 : Creation Through Implication6-20
    • § 6:5.3 : Implied Duties of Employees6-23
    • § 6:5.4 : Implied Duties of Nonemployees6-31
    • § 6:5.5 : Express Disclaimers6-38
    • § 6:5.6 : Successorship6-39
  • § 6:6 : Scope of Duties6-40
    • § 6:6.1 : Fiduciary Duties in General6-40
    • § 6:6.2 : Duties Defined by Contract6-43
    • § 6:6.3 : Covenants Not to Compete Distinguished from Nondisclosure Agreements6-44
    • § 6:6.4 : Avoiding Restrictions on Human Capital6-58
  • § 6:7 : Freedom of Information Act—Special Relationship with the Government6-65
  • § 6:8 : Breach6-69
  • § 6:9 : Use of a Trade Secret in Violation of a License Agreement6-77
  • § 6:10 : Remedies6-80
Chapter 7: Wrongful Acquisition or Use by Strangers
  • § 7:1 : Introduction and Overview7-2
  • § 7:2 : Strangers7-3
  • § 7:3 : Improper Means7-4
  • § 7:4 : Electronic Espionage7-15
  • § 7:5 : Wrongful Acquisition7-17
  • § 7:6 : Wrongful Use7-20
  • § 7:7 : Wrongful Disclosure7-24
  • § 7:8 : Comparison with Intentional Interference with Contractual Relationships7-25
    • § 7:8.1 : Elements of the Tort7-26
    • § 7:8.2 : Inducing Violation of Special Relationship7-33
  • § 7:9 : Duty Arising from Notice of Trade Secret Status7-33
    • § 7:9.1 : Example of Liability for Use of Accidentally Disclosed Trade Secret7-34
    • § 7:9.2 : Role of Notice As a Source of Fault7-35
    • § 7:9.3 : Scope of Notice7-37
    • § 7:9.4 : Effect of a Material Change in Position7-38
    • § 7:9.5 : Continued Use After Notice Received7-39
    • § 7:9.6 : Extension to Other Forms of Confidential Information7-41
  • § 7:10 : Use by One Who Knows the Secret7-42
  • § 7:11 : Proper or Privileged Means7-47
    • § 7:11.1 : UTSA Examples7-47
    • § 7:11.2 : Reverse Engineering7-47
  • § 7:12 : Government Taking7-49
  • § 7:13 : Liability of Corporate Shareholders and Directors7-50
Chapter 8: Defenses
  • § 8:1 : Introduction and Overview8-1
  • § 8:2 : Negating the Prima Facie Case8-2
  • § 8:3 : Affirmative Defenses8-3
    • § 8:3.1 : Independent Development8-5
    • § 8:3.2 : First Amendment8-5
    • § 8:3.3 : Joint Ownership8-8
    • § 8:3.4 : Shop Right Defense8-8
  • § 8:4 : Relationship Between Antitrust and Preemption Defenses8-8
  • § 8:5 : Antitrust Defense8-10
    • § 8:5.1 : Trade Secret Contracts As Restraints of Trade8-11
    • § 8:5.2 : Other Anticompetitive Conduct by Trade Secret Owner8-14
    • § 8:5.3 : Unclean Hands Defense8-21
    • § 8:5.4 : Trade Secret Misappropriation As Antitrust Violation8-21
  • § 8:6 : Preemption As a Defense8-22
    • § 8:6.1 : Federal Objectives8-23
    • § 8:6.2 : Patent Preemption8-27
    • § 8:6.3 : Preemption Under Section 301 of the 1976 Copyright Act: Basic Concepts8-32
    • § 8:6.4 : Case Law on Copyright Preemption of Trade Secret Claims8-40
    • § 8:6.5 : Practical Analysis of Preemption8-53
    • § 8:6.6 : Removal to Federal Court8-54
  • § 8:7 : Sovereign Immunity8-54
    • § 8:7.1 : Federal Tort Claims Act8-55
Chapter 9: Transferring Rights
  • § 9:1 : Introduction and Overview9-1
    • § 9:1.1 : Who Owns the Trade Secret?9-2
  • § 9:2 : Analogies to Future Interests9-3
  • § 9:3 : Formalities for Transfer9-9
  • § 9:4 : Transfers of Entire Interest9-10
  • § 9:5 : Limiting Competition by Transferor9-12
  • § 9:6 : Limiting Scope of Use by Transferee9-14
  • § 9:7 : Fraudulent Inducement to Transfer Trade Secret9-15
  • § 9:8 : Justice Department Guidelines on License Restrictions9-16
  • § 9:9 : Pledging Trade Secrets As Security for Loan9-20
    • § 9:9.1 : Relevant Provisions of U.C.C. Article 99-20
      • [A] : Trade Secrets As Personal Property Governed by Article 99-20
      • [B] : Security Agreements9-22
      • [C] : Perfection of the Security Interest: The Financing Statement9-25
      • [D] : Sale of Collateral by Secured Party After Default9-26
    • § 9:9.2 : Hypothetical Lending Transaction9-26
      • [A] : Disclosure of Trade Secret in Loan Documentation9-27
      • [B] : Post-Default Repossession and Sale of the Trade Secret9-28
      • [C] : Sale of the Trade Secret9-28
      • [D] : Prevention of Trade Secret Misappropriation9-30
  • § 9:10 : Covenant Not to Compete—Assignability9-32
  • § 9:11 : Distribution of Trade Secrets As Marital Property9-33
  • § 9:12 : Taxation9-33
Chapter 10: Litigation
  • § 10:1 : Introduction10-2
  • § 10:2 : Subject Matter Jurisdiction10-2
  • § 10:3 : Parties10-8
    • § 10:3.1 : Vicarious Liability10-8
    • § 10:3.2 : Individual Defendants10-9
    • § 10:3.3 : Business Enterprises10-9
  • § 10:4 : Personal Jurisdiction10-9
  • § 10:5 : Forum Selection Clauses10-43
  • § 10:6 : Immunity10-48
  • § 10:7 : Statutes of Limitation10-48
    • § 10:7.1 : Determining Applicable Statute of Limitations10-49
    • § 10:7.2 : Commencement of Limitations Period10-49
    • § 10:7.3 : Continuing Tort or Single Cause of Action10-51
      • [A] : Continuing Tort View10-52
      • [B] : Single Cause of Action View10-55
    • § 10:7.4 : Discovery Rule10-57
    • § 10:7.5 : Actual Damages Rule10-59
  • § 10:8 : Choice of Law10-59
  • § 10:9 : Pleading10-66
    • § 10:9.1 : Identifying the Trade Secret with Specificity10-70
    • § 10:9.2 : Compulsory Counterclaims10-73
  • § 10:10 : Discovery10-73
    • § 10:10.1 : Types of Discovery10-77
    • § 10:10.2 : Discovery Tactics10-85
    • § 10:10.3 : Discovery Scope10-87
    • § 10:10.4 : Discovery Management10-89
    • § 10:10.5 : Use of Discovery Evidence at Trial10-95
    • § 10:10.6 : Protecting Discovery Information from Disclosure10-97
    • § 10:10.7 : Preventing Disclosure of Trade Secrets in Non-Trade-Secret Litigation10-108
    • § 10:10.8 : Protecting Trade Secrets from Disclosure Under Other Laws10-111
    • § 10:10.9 : Sample Discovery Confidentiality Order10-116
    • § 10:10.10 : Discovery and the Destruction of Evidence10-120
    • § 10:10.11 : Appealability of Discovery Orders10-121
    • § 10:10.12 : Sample Discovery Plan10-123
    • § 10:10.13 : Discovery of Expert Opinions10-132
  • § 10:11 : Summary Judgment10-133
  • § 10:12 : Insurance10-136
Chapter 11: Settling Disputes
  • § 11:1 : Introduction and Overview11-1
  • § 11:2 : Legal Status of Settlement Agreements11-2
    • § 11:2.1 : Before Lawsuit Is Filed11-2
    • § 11:2.2 : After Lawsuit Is Filed11-3
  • § 11:3 : Estoppel11-4
  • § 11:4 : Examples of Settlement Agreements11-4
    • § 11:4.1 : Settlement and Release Agreement No. 111-5
    • § 11:4.2 : Stipulated Dismissal, Filing Settlement Agreement11-8
    • § 11:4.3 : Stipulation and Order Terminating Action11-10
    • § 11:4.4 : Release No. 211-11
    • § 11:4.5 : Release No. 311-11
    • § 11:4.6 : Settlement and Nondisclosure Agreement11-12
    • § 11:4.7 : Agreement 411-16
    • § 11:4.8 : Accompanying Complaint11-19
    • § 11:4.9 : Settlement Agreement and Consent Decree11-28
    • § 11:4.10 : Settlement Agreement and Consent Decree No. 511-29
    • § 11:4.11 : Settlement Agreement No. 611-30
    • § 11:4.12 : Settlement Agreement No. 711-31
    • § 11:4.13 : Release Providing for Royalty Payments11-31
    • § 11:4.14 : Consent Judgment11-32
    • § 11:4.15 : Oral Settlement on the Record11-33
  • § 11:5 : Negotiation11-34
  • § 11:6 : Arbitration11-35
  • § 11:7 : Mediation11-49
Chapter 12: Trial
  • § 12:1 : Introduction and Overview12-2
  • § 12:2 : Pretrial Conferences and Orders12-2
  • § 12:3 : Pretrial Motions and Delay12-4
  • § 12:4 : Trial Plan12-5
  • § 12:5 : Opening Statements12-7
  • § 12:6 : Proof12-8
    • § 12:6.1 : Relevancy12-9
    • § 12:6.2 : Repetition and Cumulative Evidence12-9
    • § 12:6.3 : Leading Questions12-9
    • § 12:6.4 : Compound Questions12-10
    • § 12:6.5 : Narrative Testimony12-10
    • § 12:6.6 : Interrogation by Judge12-10
    • § 12:6.7 : Impeachment12-10
    • § 12:6.8 : Exclusion of Witnesses12-11
    • § 12:6.9 : Hearsay12-11
    • § 12:6.10 : Best Evidence Rule12-14
    • § 12:6.11 : Parol Evidence Rule12-14
    • § 12:6.12 : Exclusionary Rules12-15
  • § 12:7 : Motions in Limine12-16
  • § 12:8 : Expert Witnesses12-18
    • § 12:8.1 : Scope of Testimony12-19
    • § 12:8.2 : Qualifications12-21
    • § 12:8.3 : Judge’s Power to Call12-22
    • § 12:8.4 : Foundation for Expert Testimony12-23
  • § 12:9 : Preserving Secrecy12-23
    • § 12:9.1 : Sealed Opinions12-28
  • § 12:10 : Closing Arguments12-29
  • § 12:11 : Jury Trials12-29
    • § 12:11.1 : Availability12-29
    • § 12:11.2 : Jury Instructions12-33
    • § 12:11.3 : Jury Special Verdicts and Jury Interrogatories12-35
  • § 12:12 : Trial Practice Trends12-37
  • § 12:13 : Post-Trial Relief12-38
  • § 12:14 : Stays12-41
  • § 12:15 : Preclusion12-42
Chapter 13: Remedies
  • § 13:1 : Introduction and Overview13-2
  • § 13:2 : Injunctions13-2
    • § 13:2.1 : Equitable Jurisdiction13-3
    • § 13:2.2 : Stipulated Injunctions13-6
    • § 13:2.3 : Interlocutory Injunctions13-7
      • [A] : Generally13-7
      • [B] : Irreparable Injury13-11
      • [C] : Relative Hardships13-14
      • [D] : Probability of Success on the Merits13-15
      • [E] : Bond Requirement13-17
      • [F] : Differences between TROs and Preliminary Injunctions13-18
      • [G] : Personal Service of Interlocutory Injunctions13-21
    • § 13:2.4 : Scope of Injunctive Relief: Prohibited Conduct13-25
    • § 13:2.5 : Scope of Injunctive Relief: Duration13-32
    • § 13:2.6 : Text of a Preliminary Injunction13-44
    • § 13:2.7 : Contempt13-46
    • § 13:2.8 : Sanctions for Wrongfully Obtaining Injunctions and Other Extraordinary Relief13-49
  • § 13:3 : Damages13-50
    • § 13:3.1 : Restitutionary Valuation13-63
    • § 13:3.2 : Royalty Basis13-68
    • § 13:3.3 : Unjust Enrichment13-76
    • § 13:3.4 : Punitive Damages13-78
    • § 13:3.5 : Allocation of Damages13-80
  • § 13:4 : Sanctions for Bad-Faith Claims13-82
  • § 13:5 : Hypothetical Case Illustrating Compensatory Damages, Restitution-Based Relief, Punitive Damages, and Attorney’s Fees13-84
  • § 13:6 : Constructive Trust13-85
  • § 13:7 : Searches and Seizures13-90
  • § 13:8 : Malicious Prosecution13-97
  • § 13:9 : Criminal Penalties13-97
  • § 13:10 : Economic Espionage Act13-102
  • § 13:11 : Bankruptcy13-118
Chapter 14: International Disputes
  • § 14:1 : Introduction and Overview14-2
  • § 14:2 : Hypothetical Case14-3
  • § 14:3 : Analytical Framework and Checklist14-4
  • § 14:4 : Sources of Law14-5
    • § 14:4.1 : Public International Law Versus Private International Law14-5
    • § 14:4.2 : GATT TRIPs14-7
    • § 14:4.3 : European Community14-7
    • § 14:4.4 : European Community Institutions14-9
    • § 14:4.5 : European Trade Secrets Law14-13
    • § 14:4.6 : Canada14-13
    • § 14:4.7 : Mexico14-14
    • § 14:4.8 : Japan14-14
    • § 14:4.9 : China14-15
    • § 14:4.10 : Human Rights Convention14-16
  • § 14:5 : Competition Regulation14-18
  • § 14:6 : Procedural Influence of Civil Law Tradition14-20
  • § 14:7 : Jurisdiction14-21
    • § 14:7.1 : Choice of Law and Personal Jurisdiction14-24
    • § 14:7.2 : Service of Process14-26
    • § 14:7.3 : Parallel Proceedings in U.S. and Foreign Courts14-33
    • § 14:7.4 : Protecting Jurisdiction14-42
  • § 14:8 : Foreign Discovery14-44
  • § 14:9 : Choice of Law14-56
    • § 14:9.1 : Determining Foreign Law14-57
    • § 14:9.2 : Determining the Substantive Reach of Domestic Law14-58
  • § 14:10 : Recognition and Enforcement of Judgments14-59
  • § 14:11 : Exclusion and Forfeiture of Imported Articles Involving Misappropriated Trade Secrets14-67
  • § 14:12 : International Arbitration14-69
Chapter 15: Table of Authorities
Chapter 16: Index to Trade Secrets

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