Must be reasonable Contracts to Restrict Use of Trade Secrets - PowerPoint PPT Presentation

Trade Secret – Employees • Common Law Obligation to Assign Inventions • Trailer Clauses • Must be reasonable • Contracts to Restrict Use of Trade Secrets • Express v. Implied • Particular v. General Knowledge • Restrictions on non-trade secrets?

Trade Secret – Employees • Noncompetition Agreements • Edwards v. Arthur Andersen (CA S.Ct.) • “If you leave the Firm, for eighteen months after release or resignation, you agree not to perform professional services of the type you provided for any client on which you worked during the eighteen months prior to release or resignation. This does not prohibit you from accepting employment with a client. [¶] For twelve months after you leave the Firm, you agree not to solicit (to perform professional services of the type you provided) any client of the office(s) to which you were assigned during the eighteen months preceding release or resignation. [¶] You agree not to solicit away from the Firm any of its professional personnel for eighteen months after release or resignation.”

Trade Secret – Employees • Noncompetition agreements generally not favored • Compare California: • Section 16600. “Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” • To Virginia: • must be “reasonable as to its duration, geographical area, and type of employment or line of business”

Trade Secret – Employees • Inevitable Disclosure Doctrine • Nonsolicitation Agreements

Trade Secret – (3) Remedies Damages Injunction Date of PI/Judgment • Injunction

Trade Secret – (3) Remedies • What if no longer a Trade Secret? Winston Research • Head-Start Injunction Injunction—Delay Infringer Misappropriation Head start Secret Disclosed • Other options? • No injunction – Conmar (2d Cir.) • Permanent injunction – Shellmar (7th Cir.)

Trade Secret – (3) Remedies • Damages