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Archive for the ‘Customer lists’ Category

Eastern District of New York Holds That Contact List Is Not Entitled to Trade Secret Protection Because Information is Readily Duplicated Through Facebook or LinkedIn

In Customer lists, Ready Ascertainability, Secrecy, Sister State Construction of UTSA on September 29, 2010 at 5:23 am
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In a sign of the times, District Judge Arthur D. Spatt of the Eastern District of New York adopted the recommendations of Magistrate Judge A. Kathleen Tomlinson who denied a motion for preliminary injunction in a trade secrets misappropriation case involving a customer list.  Sasqua Group, Inc. v. Courtney, No. CV 10-528(ADS)(AKT), 2010 WL 3613855 (E.D.N.Y. 2010 Aug. 2, 2010) (slip op.). The court reasoned that because the information could be properly acquired or readily duplicated through public databases such as Facebook and LinkedIn, the information was not entitled to trade secret protection.  Id. *23.

In sum, Plaintiffs have failed to prove a physical appropriation or copying of confidential information or wrongful disclosure or use of a trade secret. See Leo Silfen, 29 N.Y.2d at 389, 328 N.Y.S.2d at 424, 278 N.E.2d 636. The information in Sasqua’s database concerning the needs of its clients, their preferences, hiring practices, and business strategies, as well as Sasqua’s acquaintance with key decision-makers at those firms may well have been a protectable trade secret in the early years of Sasqua’s existence when greater time, energy and resources may have been necessary to acquire the level of detailed information to build and retain the business relationships at issue here. However, for good or bad, the exponential proliferation of information made available through full-blown use of the Internet and the powerful tools it provides to access such information in 2010 is a very different story. Read the rest of this entry »

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Northern District Denies Preliminary Injunction Where Plaintiff’s Declaration Failed to Show Customer List Was the Result of Substantial Time, Expense and Effort on Part of Plaintiff

In Customer lists, Motion to Dismiss, Preemption, Preliminary Injunction on September 24, 2010 at 11:02 am
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The Northern District of California denied defendants’ motion to dismiss based on UTSA preemption and denied plaintiff’s motion for preliminary injunction.  Kovesdy v. Kovesdy, C 10-02012 SBA, 2010 WL 3619826 (N.D. Cal. Sept. 13, 2010) (slip op.). Plaintiff Eric Kovesdy (“Eric” or “Plaintiff”) sued his stepmother, Defendant Hedy Kovesdy (“Hedy”) for, inter alia, for misappropriation of trade secrets under California’s Uniform Trade Secrets Act (“UTSA”), Cal. Civ. Code §§ 3426-3426.11, and trademark infringement under the Lanham Act, 15 U.S.C. § 1125(a). Id. (1) Defendants moved to dismiss; and (2) Plaintiff moved for preliminary injunction.

Background

Peter Kovesdy (“Peter”) opened a professional tax practice known as Humex Income Tax (“Humex”).   Read the rest of this entry »

Third Circuit Affirms Award of Damages in Misappropriation of Trade Secrets Case and Denial of Recovery on Injunction Bond After Employee’s Partial Success on Appeal

In Customer lists, Employee Mobility, Injunction Bond, Third Circuit on September 20, 2010 at 6:52 am
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The United States Court of Appeals for the Third Circuit affirmed the district court’s award of damages against employees on a claim brought by their former employer for, inter alia, misappropriation of trade secrets.  Latuszewski v. Valic Financial Advisors, Inc., No. 08-1511, 2010 WL 3582434 (3rd Cir. Sept. 15, 2010).   Former employer, VALIC Financial Advisors, Inc., bought claims against former employees Gary Latuszewski and James Rogan alleging breach of contract, breach of fiduciary duty, misappropriation of trade secrets, and tortious interference with contract. Id. *1. Employees appealed arguing that this award was in error and also that the District Court erred in declining to award them damages under VALIC’s injunction bond after this court vacated part of the District Court’s temporary injunction against them. Id. Read the rest of this entry »