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Posts Tagged ‘China’

Second District Vacates Arbitration Award for Failure to Resolve Misappropriation of Trade Secrets Counterclaim

In Arbitration on November 15, 2010 at 11:08 am
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The Second District Court of Appeal vacated an arbitration award for failure to resolve defendants’ counter-claim for misappropriation of trade secrets.  Rad v. Keehan, No. B222049, 2010 WL 4487142 (Cal. App. 2d Dist. Nov. 10, 2010).  Defendants Michael Keehan, Lucy Keehan, Lucy’s Silk Store, Inc. and Michael’s Imports, Inc. (collectively defendants) appealed from a judgment entered after the trial court denied their motion to vacate an arbitration award against them and instead confirmed the award.  Id. *1.  Defendants contended that the arbitrator failed to decide their counter-claim for misappropriation of trade secrets, and thus the trial court should have vacated the arbitration award for failure to resolve all issues submitted to arbitration. Id. The Second District Agreed. Id.

Background

Plaintiff Ira Rad, on behalf of his company Bita LLC, executed an agreement (Sales Agreement) with one of defendants’ corporations, Michael Imports, Inc., to sell and distribute silk products from defendants’ “Lucy’s Silk” label. Id. Bita paid defendants $60,000 as partial consideration for the exclusive right to sell the products in the eastern United States, but after execution of the Sales Agreement, defendants continued to sell the products directly to East Coast customers, undercutting Bita’s sales.  Id. Plaintiffs sued defendants, alleging, inter alia, causes of action for breach of contract, fraud, negligent misrepresentation, and rescission with respect to the Sales Agreement. Id. The parties ultimately stipulated to submit their disputes to binding arbitration and a stay of the litigation was entered. Id. Read the rest of this entry »

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Indiana Scientist Ordered Detained on Charges of Economic Espionage

In Breaking News, Economic Espionage on September 1, 2010 at 2:47 am
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AP reports that a former Indiana scientist accused of illegally sending trade secrets worth $300 million to China and Germany was ordered detained Tuesday on charges of economic espionage.  A federal indictment unsealed in Indianapolis alleges that Kexue Huang, who was born in China, passed on proprietary information about the development of organic pesticides to Hunan Normal University while he worked as a researcher for Dow AgroSciences in Indiana from 2003 to 2008.

Assistant U.S. Attorney Cynthia Ridgeway said Huang, a Canadian citizen with permanent U.S. resident status, used a “patient and calculated” plan to “drain” the Indianapolis-based company of technology that took 20 years to develop. Read the rest of this entry »

Protecting Trade Secrets in China is Top Priority for Group of In House Intellectual Property Attorneys

In Conferences, Criminal Theft of Trade Secrets, International on August 11, 2010 at 9:03 pm
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Protecting trade secrets when doing business in developing countries has long been a concern of intellectual property attorneys.  Protecting American trade secrets in China was identified as a top priority amount a group of in-house intellectual property attorneys at a the American Bar Association‘s annual conference which was held at the Moscone Center in San Francisco this morning.

Amy Miller of Legal Pad reported on some perspectives shared at the conference:

Gary Loeb, vice president of intellectual property at Genenetech, Inc., said that during litigation he fights aggressively to keep his company’s secret information confidential. “It’s a battle we take very seriously,” he said. “It’s something that makes our cases very expensive.”

Scott Piering, senior IP lawyer at Cargill, Incorporated, said . . . . [that] Cargill has had less success keeping their trade secrets secret when doing business in China. Dealing with corporate espionage is just the price of doing business there, he said. So his company doesn’t take its best trade secrets to China, but Cargill has taken some calculated risks in the country, and said it’s expected that trade secrets will be stolen. “It keeps me up at night constantly,” he said.

Robert Lindefjeld, general counsel and chief IP counsel for Nantero, Inc., said he hasn’t figured out how to deal with corporate spying in China either. His strategy is to just maintain a strong patent portfolio in China. “I used to file every single patent overseas,” he said. “Now I only file key patents because it’s so expensive.”

You can read the article here.

By CHARLES H. JUNG

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For All the Tea in China: How England Stole the World’s Favorite Drink and Changed History

In Criminal Theft of Trade Secrets, Other Cases of Interest on August 9, 2010 at 4:13 pm
ISTANBUL, TURKEY - NOVEMBER 08:  A cayci ('tea...
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Sarah Rose recently published a well-received book on one of the Western world’s greatest trade secret thefts called For All the Tea in China: How England Stole the World’s Favorite Drink and Changed History.  Ms. Rose discusses how the British government plotted to and then did steal tea plants from China, successfully transplanting them in India, making the British Empire less reliant on trade with China.

You can read an interview here.  And you can purchase the book on Amazon.

By CHARLES H. JUNG

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