Trade Secrets Law for the Massachusetts Practitioner

Preliminary Pages
PREFACE
AUTHOR’S ACKNOWLEDGMENTS
MCLE ACKNOWLEDGMENTS
ABOUT THE AUTHOR
TABLE OF CONTENTS
Chapter 1
Introduction and History
§ 1.1 INTRODUCTION
§ 1.2 HISTORY
§ 1.2.1 Trade Secrets Law Dates Back to Roman Times—Maybe
§ 1.2.2 Modern Trade Secrets Law Emerged in the Nineteenth Century
§ 1.2.3 State Trade Secrets Law Becomes Uniform—Sort Of
§ 1.2.4 Federal Trade Secrets Law Takes Center Stage
(a) Limits of the EEA: United States v. Aleynikov
(b) Legislative Response to United States v. Aleynikov
(c) The Obama Administration’s Focus on Trade Secrets
(d) The New Federal Private Right of Action
§ 1.2.5 Massachusetts Becomes Number 49 (Sort Of)
§ 1.2.6 International Trade Secrets Law Moves Forward
(a) European Union Trade Secrets Directive
(b) Trans-Pacific Partnership
Chapter 2
The Law of Trade Secrets
§ 2.1 SOURCES OF LAW
§ 2.1.1 Restatement (First) of Torts
§ 2.1.2 Uniform Trade Secrets Act
§ 2.1.3 Restatement (Third) of Unfair Competition
§ 2.1.4 Massachusetts
(a) Statutory Basis: Superseded Civil Statute, Now Applicable Only to Claims Arising Prior to October 1, 2018
(b) Statutory Basis: New Civil Statute, Massachusetts Uniform Trade Secrets Act (MUTSA, or MTSA), Applicable to Claims Arising After October 1, 2018
(c) Common Law (pre-MUTSA)
(d) Statutory Basis: Criminal Statute
§ 2.1.5 Economic Espionage ActDefend Trade Secrets Act
Federal Private Right of Action (Section 1836(b))
Federal Court Access (Section 1836(c))
Ex Parte Seizure Orders (Section 1836(b)(2))
Remedies (Section 1836(b)(3))
Immunity and Related Notice Requirement (Section 1833(b))
Impact on the Inevitable Disclosure Doctrine (1836(b)(3))
Exceptions to Misappropriation (Sections 1839(5) and 1833)
Additional Aspects of the DTSA Not Reflected in the EEA
Relationship Between the DTSA and the UTSA with Respect to the Goal of Uniformity
Application of the DTSA to Pre-DTSA Conduct Continuing After Enactment
§ 2.1.6 Trade Secrets at the International Trade Commission
§ 2.2 DEFINITIONAL ASPECTS OF TRADE SECRETS
§ 2.2.1 Sources of Definitions
(a) Restatement (First) of Torts
(b) Uniform Trade Secrets Act
(c) Restatement (Third) of Unfair Competition
(d) Massachusetts
Pre-MUTSA Definition
(e) Defend Trade Secrets ActEconomic Espionage Act
§ 2.2.2 Secrecy
(a) Sufficiency of Secrecy
(b) Efforts to Preserve Secrecy (“Reasonable Measures”)
§ 2.2.3 Competitive or Economic Value or Advantage
§ 2.2.4 Confidential Information Distinguished
§ 2.2.5 Types of Trade Secrets and Confidential Information
(a) Compilations with Public and Private Information
(b) Customer Lists and/or Information
(c) Financial and Business Information
(d) Software
(e) Clinical Trial Information
§ 2.2.6 The Announcement Rule Anomaly
§ 2.3 MISAPPROPRIATION OF TRADE SECRETS (PROSCRIBED CONDUCT)
§ 2.3.1 Restatement (First) of Torts
§ 2.3.2 Uniform Trade Secrets Act
§ 2.3.3 Restatement (Third) of Unfair Competition
§ 2.3.4 Massachusetts
§ 2.3.5 Defend Trade Secrets Act
§ 2.3.6 The Special Problem of Remembered Trade Secrets
§ 2.3.7 Misappropriation Is Not a Matter of Degree
Chapter 3
Litigating the Trade Secrets Case
§ 3.1 INTRODUCTION
§ 3.2 ENFORCING TRADE SECRETS RIGHTS: INITIAL CONSIDERATIONS
§ 3.2.1 Before the Lawsuit Is Even Contemplated
§ 3.2.2 Investigate
§ 3.2.3 Conduct an Exit Interview
§ 3.2.4 Determine Whom to Pursue
§ 3.2.5 Send a Cease-and-Desist Letter
§ 3.2.6 Act Quickly
§ 3.2.7 Determine Where to Sue
(a) Forum Selection in the Federal Courts
Atlantic Marine Construction Co. v. United States District Court for the Western District of Texas, 134 S. Ct. 568 (2013)
Application of Atlantic Marine to the Protection of Trade Secrets
(b) Forum Selection in State Court
§ 3.2.8 Credible Evidence: Percipient Witnesses, Expert Witnesses, Expedited Discovery, and Inferences
§ 3.2.9 Bond
§ 3.3 PRIMA FACIE CASE FOR MISAPPROPRIATION OF TRADE SECRETS
§ 3.3.1 Massachusetts Statute and Common Law
(a) Law Effective Prior to October 1, 2018
(b) Law Effective Beginning October 1, 2018
§ 3.3.2 Uniform Trade Secrets Act
§ 3.3.3 Defend Trade Secrets Act / Economic Espionage Act
§ 3.4 CAUSATION
§ 3.5 HARM
§ 3.6 AVAILABLE REMEDIES
§ 3.6.1 Injunctive Relief
(a) Applicable Standards
(b) Injunctive Relief Is Not an Entitlement
(c) The Black Hat / White Hat Effect
(d) Initial Considerations
(e) Satisfying the Likelihood of Success Prong
(f) Satisfying the Irreparable Harm Requirement
General Principles
Special Considerations
(g) Impact of the Inevitable Disclosure Doctrine
The Origins of the Inevitable Disclosure Doctrine
The Inevitable Disclosure Doctrine in Massachusetts
The Inevitable Disclosure Doctrine Outside Massachusetts
The Inevitable Disclosure Doctrine Under the DTSA
Balance of Harms
(h) Satisfying the Public Interest Prong
(i) Contents of an Injunction
§ 3.6.2 Ex Parte Seizure Orders
§ 3.6.3 Damages
§ 3.6.4 Attorney Fees
§ 3.7 IDENTIFICATION AND DISCOVERY OF TRADE SECRETS DURING LITIGATION
§ 3.7.1 Identification of Trade Secrets
§ 3.7.2 Discovery Concerning Trade Secrets
§ 3.7.3 Protective Orders
§ 3.7.4 The Tension Between the Protection of Trade Secrets from Disclosure and the Rights of the Defendant and the Public to Information
§ 3.7.5 Types and Contents of Protective Orders
§ 3.7.6 Expedited Discovery
§ 3.7.7 Forensic Review of Hard Drives, Storage Systems, and Social Media
§ 3.7.8 Spoliation of Evidence
(a) Background
(b) Duty to Preserve Evidence
Timing of Preservation Obligations
Scope of the Duty (What Must Be Preserved and How)
(c) Preservation Orders
(d) Standards for Imposing Sanctions
Spoliation of ESI
Spoliation of Tangible Documents and Other Non-ESI
Elements and the Range of Culpability
Understanding the Different Standards
(e) Determining Appropriate Sanctions
Entitlement to Sanctions
The Range of Sanctions
§ 3.8 DEFENDING AGAINST A CLAIM OF TRADE SECRET MISAPPROPRIATION
§ 3.8.1 Initial Considerations
(a) Former Employee’s Initial Steps
(b) New Employer’s Initial Steps
(c) Joint or Individual Representation?
(d) Indemnification of Employee?
§ 3.8.2 Possible Defenses
(a) Whistle Blower Immunity and Other Immunized Disclosures
(b) Failure to Include Whistleblower Notice
(c) Inadvertent Retention of Information
Chapter 4
Trade Secrets Protection Programs
§ 4.1 INTRODUCTION
§ 4.2 PRELIMINARY STEPS: TRADE SECRETS AUDIT
§ 4.2.1 Overview
§ 4.2.2 Catalog
§ 4.2.3 Review
§ 4.2.4 Analyze
§ 4.3 THE TRADE SECRETS PROTECTION PROGRAM
§ 4.4 SPECIAL CONSIDERATIONS CONCERNING NONDISCLOSURE AGREEMENTS
§ 4.4.1 The Need for and Purpose of Nondisclosure Agreements
§ 4.4.2 Relevant Language
§ 4.5 SPECIAL CONTEXTS OF TRADE SECRETS ISSUES
§ 4.5.1 Mobile Devices
§ 4.5.2 Government Procurement
§ 4.5.3 Federal and State Regulatory Submissions
§ 4.5.4 Preemption by and of Related Laws
(a) Patent Laws
(b) Copyright Laws
(c) UTSA Preemption of Other State Law Claims
Chapter 5
Related Claims
§ 5.1 STATE LAW
§ 5.1.1 G.L. c. 93A
(a) G.L. c. 93A in General
(b) The Overlap of G.L. c. 93A with Misappropriation of Trade Secrets
§ 5.1.2 Conversion
§ 5.1.3 Breach of Fiduciary Duty
(a) Massachusetts Law
(b) Other States’ Laws
§ 5.1.4 Violation of G.L. c. 149, § 148 (the Wage Act)
§ 5.1.5 Invasion of Privacy
§ 5.2 FEDERAL LAW
§ 5.2.1 Computer Fraud and Abuse Act
§ 5.2.2 International Trade Commission
§ 5.3 INTERNATIONAL LAWS
Table of Cases
Table of Statutes, Rules, and References
FEDERAL
MASSACHUSETTS
OTHER STATES
ADDITIONAL REFERENCES AND RESOURCES
Index