Quick Look: The First Application of the New Defend Trade Secrets Act
By: Jonathan P. Osha
In the May 2016 edition of the Osha Liang Newsletter, we introduced the new Federal trade secret law, the Defend Trade Secrets Act (“DTSA”) (see article here). The DTSA provides a Federal, civil cause of action for theft of trade secrets, and provides remedies both in the form of injunctions and damages. Now, a District Court in California has issued one of the first injunctions under the new law.
In the case of Henry Schein, Inc. v. Cook, No. 16-cv-03166-JST (N.D. Cal. June 10, 2016), according to plaintiff’s allegations, plantiff HSI is in the business of selling healthcare products. Defendant Cook was hired as a sales consultant, and entered into a confidentiality and non-solicitation agreement. Prior to leaving HSI, Cook allegedly forwarded confidential information to her personal email and accessed and copied other confidential information and programs. On June 9, 2016, HSI filed a complaint alleging, inter alia, misappropriation of trade secrets under the DTSA. On June 10, 2016, the District Judge entered a temporary restraining order prohibiting Cook from, among other things, contacting or doing business with HSI customers, violating her confidentiality obligations, accessing or using HSI’s confidential information, and destroying or altering any evidence. On June 22, following a hearing, the Judge entered a preliminary injunction enjoining Cook from accessing or using HSI’s confidential information, but declined to enjoin Cook from doing business with HSI customers, finding the non-solicitation agreement to be a violation of California law.
This case is the first of many to use the DTSA to deter trade secret theft. It is the beginning of what will surely develop into a significant body of law on this topic.
To read the above brief in Japanese, click here.
To read the above brief in Simplified Chinese, click here.
To read the above brief in Traditional Chinese, click here.