IBM v. PSI: Trade Secret Beheamoths

The trade secret dispute between IBM and PSI, two competitors in the highly profitable mainframe market, has taken another turn with PSI’s recent summary judgment filing on April 23.  This case emphasizes the importance of timely investigating and prosecuting your rights in trade secret cases.  A failure to assert your rights upon first noticing that your trade secrets may have been misappropriated can jeopardize your case later.  It is important to protect your trade secrets both in business dealings and in court.

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

Jury Finds Company Trade Secrets Enforceable: $17 Million in Punitive Damages Against Ex-Employees and New Employer

Trade Secret Jury Verdict : Innovative Technologies Corp. v. James Silcott et al. (The Trade Secrets Vault)

The jury awarded $6,475,855.44 in compensatory damages and $17 million in punitive damages in this massive trade secret theft verdict.

The jury found that the salaries of Innovative Technologies employees and its mapping strategies were trade secrets, or that Advanced Management Technologies and Kenton Trace Technologies misappropriated the plaintiff's trade secrets. Jurors found that the plaintiff suffered actual loss proximately caused by the defendants' misappropriation of its trade secrets or that the defendants were unjustly enriched by its misappropriation of the plaintiff's trade secrets.

They found that Advanced Management Technologies acted with purpose to procure contract breaches or terminate the business relationships the plaintiff had with its employees, and that there was no justification for Advanced Management Technologies' conduct. The jury found that Advanced Management Technologies' tortious interference with the plaintiff's business relationship and contracts with its employees was the proximate cause of the damages it suffered. Jurors found that Advanced Management Technologies engaged in a civil conspiracy with the individual defendants or the plaintiff's employees to cause it harm, which was a proximate cause of the plaintiff's damages.

The competing firm, Advanced Management Technology Inc. of Arlington, Va., was ordered to pay virtually all of the damages, Dyer said, having been found guilty of tortious inference with business relationships, civil conspiracy, and theft of trade secrets for acting in collusion with the former employees of Innovative Technologies.

Technorati Tags: trade secret, non-compete, jury, punitive damages

Severance Contracts: Executive Buy-Outs At General Motors

Here are some links which provide information on the GM severance plan offer first reported in March, 2006:

• CNN:  GM offers workers up to $140K to leave.  Click here.
• Delphi, GM Offers Get Mixed Reception Forbes
• GM Offers Early Retirement Plan for Hourly Workers Voice of America
• List of Seveance Contract Forms

Executive buy-out, severance and compensation issues are becoming more important as our economy heads towards recession and more companies are looking to downsize.  Our attorneys can help your company design and negotiate a severance plan for your executives, managers and employees. Contact us today.

Executive Severance Contracts: GM offers workers up to $140K to leave

Executive Level Severance Contracts Offered To GM Workers.

GM is offering money to its workers in order to entice those employees to voluntarily terminate employment (ie retire).  Severance / retirement packages are reportedly available to 113,000 workers.  GM also reportedly reached a deal with Delphi workers to avoid a labor dispute.