Companies Must Do More To Define and Protect Their Trade Secrets

GLOBAL WATER GROUP, INC., Appellant v. Robert ATCHLEY and Aspen Water, Inc., Appellee. (The Trade Secrets Vault)

Court of Appeals of Texas, Dallas. GLOBAL WATER GROUP, INC., Appellant, v. Robert ATCHLEY and Aspen Water, Inc., Appellee. No. 05-06-00709-CV. Jan. 9, 2008.
Rehearing Overruled Feb. 14, 2008.

Background: Water purification corporation filed lawsuit against its former president and his competing water purification company, asserting claims for misappropriation of trade secrets and breach of shareholder agreement. Following a jury verdict in favor of plaintiff, defendants filed motion for judgment notwithstanding the verdict (JNOV). The 116th Judicial District Court, Dallas County, Robert Frost, J., granted motion. Plaintiff appealed.

Holdings: The Court of Appeals, O'Neill , J., held that:
(1) plaintiff's formula of compound used in "mixed media pod" during absorption step of water purification process was not a trade secret;
(2) sequence of process used by plaintiff in its water purification system was not a trade secret; and
(3) corporation's former president did not breach shareholder agreement.

Technorati Tags: trade secret, fiduciary, shareholder

Non-Compete Contract Basics: The Employer Perspective

A non-compete contract is an agreement signed by an employee or contractor where he/she agrees that they will not engage in certain employment within a certain geographic area for a certain period of time after they quit or are fired. A non-solicitation contract is an agreement signed by an employee or contractor where he/she agrees that they will not contact and/or solicit an employer's customers and/or remaining employees for a certain period of time after they quit or are fired.

This article will address non-compete and non-solicitation agreements from the employers point of view.