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Shhh! It’s Time for Trade Secret Cases . Steve Baron 3-26-09. Cenveo Corp. v. Southern Graphic (1-22-09). What Court? Who’s the plaintiff? Who are the defendants? What are they fightin’ about? What is the Court asked to decide? What does the Court decide and why?.

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cenveo corp v southern graphic 1 22 09
Cenveo Corp. v. Southern Graphic (1-22-09)
  • What Court?
  • Who’s the plaintiff?
  • Who are the defendants?
  • What are they fightin’ about?
  • What is the Court asked to decide?
  • What does the Court decide and why?
cenveo corp v southern graphic 1 22 091
Cenveo Corp. v. Southern Graphic (1-22-09)
  • Court = US DC Minnesota
  • Plaintiff = Cenveo
  • Defendants = Southern Graphic and indiv.
  • Fight = Cenveo wants to stop SG from working with past and current Cenveo clients and using proprietary info.
  • Court to decide whether to enter preliminary injunction.
cenveo corp v southern graphic 1 22 092
Cenveo Corp. v. Southern Graphic (1-22-09)
  • Court decides:
    • Grants preliminary injunction in part and denies in part.
  • What are alleged trade secrets:
    • Job history information
    • USB flash drive
cenveo corp v southern graphic 1 22 093
Cenveo Corp. v. Southern Graphic (1-22-09)
  • Cenveo claims:
    • Breach of duty of loyalty
    • Tortious interference with employees and customers
    • Misappropriation of trade secrets
    • Unjust enrichment
    • Unfair competition
cenveo corp v southern graphic 1 22 094
Cenveo Corp. v. Southern Graphic (1-22-09)
  • Preliminary injunction factors:
    • Irreparable harm
    • Balance of harms
    • Probability of success on the merits
    • Public interest
cenveo corp v southern graphic 1 22 096
Cenveo Corp. v. Southern Graphic (1-22-09)
  • Why wasn’t Cenveo entitled to a preliminary injunction to stop SG from working with past and present clients?
    • No irreparable harm
    • Balance of harms in favor of SG employees
    • Right of clients to work with whom they want
cenveo corp v southern graphic 1 22 097
Cenveo Corp. v. Southern Graphic (1-22-09)
  • Why was Cenveo entitled to an injunction on information relating to job histories?
    • Sufficient trade secret
    • Competitively advantageous
    • Would be irreparably harmed
    • High degree of probability of “inevitable disclosure”
clearone v chiang 2007
ClearOne v. Chiang (2007)
  • What court?
  • Who’s the plaintiff?
  • Who are the defendants?
  • What’s the fight about?
  • What’s the procedural posture?
clearone v chiang 20071
ClearOne v. Chiang (2007)
  • Court = USDC Utah
  • Plaintiff = ClearOne = Maker of wideband code
  • Defendants = Biamp licenses object code from Wideband
  • The fight’s about whether the code is a trade secret
  • The posture: Biamp files a motion to dismiss
clearone v chiang 20072
ClearOne v. Chiang (2007)
  • Biamp says: it can’t read the object code; only machines can read object code.
  • Court says: who cares. It doesn’t matter.
  • Biam says: object code was publicly available.
  • Court says: who cares. Even if object code available, the source code (human readable) may still be protectable trade secret.
  • Result: Motion to dismiss complaint denied.
taco bell v tbwa 2009
Taco Bell v. TBWA (2009)
  • http://www.youtube.com/watch?v=M8sZ1DWsAHE/
taco bell v tbwa 20091
Taco Bell v. TBWA (2009)
  • What court?
  • Who’s the plaintiff?
  • Who’s the defendant?
  • What are they fightin’ about?
  • What’s the trade secret?
taco bell v tbwa 20092
Taco Bell v. TBWA (2009)
  • Court = Ninth Circuit Court of Appeals
  • Plaintiff/Appellant = Taco Bell
  • Defendant/Appellee = TBWA
  • They’re fightin’ about who should pay for the use of the psycho chihuahua character.
  • The confidential TS is the concept of using a psycho chihuahua as a Taco Bell mascot
taco bell v tbwa 20093
Taco Bell v. TBWA (2009)
  • Underlying case: Wrench v. Taco Bell
    • Jury finds that Taco Bell breached and implied confidentiality agreement.
    • Awards Wrench $30 million, which mounts to $42 million with interest.
taco bell v tbwa 20094
Taco Bell v. TBWA (2009)
  • This case:
    • Question presented: Is Taco Bell’s ad agency, TBWA, liable for “indemnity” to Taco Bell?
    • Trial court granted summary judgment for TBWA.
    • Ninth Circuit agrees: TBWA not aware of implied contract b/t Taco Bell and Wrench.
quote of the day
Quote of the Day
  • “Do not tell secrets to those whose faith and and silence you have not already tested.”
      • Elizabeth I
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