Digital Commons Network^™

Beyond Trade Secrecy: Confidentiality Agreements That Act Like Noncompetes, Camilla A. Hrdy, Christopher B. Seaman

Scholarly Articles

There is a substantial literature on noncompete agreements and their adverse impact on employee mobility and innovation. But a far more common restraint in employment contracts has been underexplored: confidentiality agreements, sometimes called nondisclosure agreements (NDAs). A confidentiality agreement is not a blanket prohibition on competition. Rather, it is simply a promise not to use or disclose specific information. Confidentiality agreements encompass trade secrets, as defined by state and federal laws, but confidentiality agreements almost always go beyond trade secrecy, encompassing any information the employer imparted to the employee in confidence.

Despite widespread use, confidentiality agreements have received little attention. …

Curiosities Of Standing In Trade Secret Law, Charles T. Graves

Northwestern Journal of Technology and Intellectual Property

Standing under the Uniform Trade Secrets Act – the right to pursue a misappropriation claim – is a vexing question when compared to patent, copyright, and trademark law. Instead of requiring ownership or license rights as a condition to sue, courts often find that mere possession of an asserted trade secret suffices for standing, even when the provenance of the information is murky. In some cases, courts even allow trade secret plaintiffs to claim intellectual property rights in the preferences and desires expressed to them by their customers in lawsuits designed to stop former employees from doing business with those …

20 Years Of Trade Secrets Scholarship (2002-2022), Sharon Sandeen

Faculty Scholarship

No abstract provided.

The Problems With Trade Secret Protection/Overprotection In Asia, Kung-Chung Liu

Research Collection Yong Pung How School Of Law

Trade secret protection law has been an important complement to patent law and has gained increasing importance over the last three decades, not least in Asia. Major Asian countries are now at a crossroads, as some (Japan, Korea, Thailand, Taiwan, and China) are following the US approach to criminalizing trade secret infringement and imposing harsher penalties on economic espionage (Japan, Korea, Taiwan, and China). This paper identifies many of the problems associated with trade secret protection, provides indicators of the overprotection of trade secrets, and warns against its many side effects. It then points out the crossroads that Asian economies …

Data Privacy, Human Rights, And Algorithmic Opacity, Sylvia Lu

Fellow, Adjunct, Lecturer, and Research Scholar Works

Decades ago, it was difficult to imagine a reality in which artificial intelligence (AI) could penetrate every corner of our lives to monitor our innermost selves for commercial interests. Within just a few decades, the private sector has seen a wild proliferation of AI systems, many of which are more powerful and penetrating than anticipated. In many cases, AI systems have become “the power behind the throne,” tracking user activities and making fateful decisions through predictive analysis of personal information. Despite the growing power of AI, proprietary algorithmic systems can be technically complex, legally claimed as trade secrets, and managerially …

Vaccine Clinical Trials And Data Infrastructure, Ana Santos Rutschman

Utah Law Review

We find ourselves at a momentous turn in the history of vaccines. The COVID-19 pandemic triggered a quasi-global vaccine race that not only compressed vaccine research and development (R&D) timelines, but also paved the way for the administration of a new type of vaccine technology – mRNA vaccines, which work in substantially different ways from the vaccines in use before the pandemic.

While the process of bringing emerging COVID-19 vaccines to market has taken place in an unusually short timeframe, it was largely predicated on the same scientific and regulatory processes that govern the development, approval and deployment of new …

The Missing Algorithm: Safeguarding Brady Against The Rise Of Trade Secrecy In Policing, Deborah Won

Michigan Law Review

Trade secrecy, a form of intellectual property protection, serves the important societal function of promoting innovation. But as police departments across the country increasingly rely on proprietary technologies like facial recognition and predictive policing tools, an uneasy tension between due process and trade secrecy has developed: to fulfill Brady’s constitutional promise of a fair trial, defendants must have access to the technologies accusing them, access that trade secrecy inhibits. Thus far, this tension is being resolved too far in favor of the trade secret holder—and at too great an expense to the defendant. The wrong balance has been struck.

This …

Note: Improving The Defend Trade Secrets Act Of 2016: Against Preempting State Trade Secret Law, Victoria Hanson

Notre Dame Journal on Emerging Technologies

In order to better protect companies from losing their valuable trade secrets and prevent irreparable harm, Congress enacted the Defend Trade Secrets Act of 2016 (DTSA),8 the first federal civil protection given for trade secrets. In this paper, I argue that the DTSA has indeed not met its supposed goals, but the solution does not lie in preempting state law. Firstly, I explain the history, goals, and provisions of the DTSA and how it has failed to meet the original goals over the past three years. Secondly, I explain the argument for the DTSA to preempt state law and its …

Repeal The Defend Trade Secret Act: Why Congress Can't Rely On Trade Secret Law To Protect America's Trade Secrets, Steven Miller

Journal of Intellectual Property Law

Trade secret theft from foreign and domestic competitors continue to siphon technological advances from United States businesses. This siphoning erodes America's competitive advantage in the global marketplace; however, this note argues that recent Congressional legislation that attempts to strengthen trade secret protection actually harms America's competitive advantage. This note argues for Congress to repeal its trade secret protection, because trade secret law,a s currently applied, fails to deter trade secret theft and fails to protect American business interests domestically or abroad, and yet actually harms domestic innovation.

Secrets, Sovereigns, And States: Analyzing State Government's Liability For Trade Secret Misappropriation, Grant Cole

Journal of Intellectual Property Law

Trade secrets are many business's most valuable assets. From Google’s algorithm to Coca-Cola’s secret recipe, trade secrets are becoming increasingly important to businesses and our economy. What if state governments could simply misappropriate these trade secrets without liability? Sadly, this situation is not uncommon. Many state governments have misappropriated trade secrets with virtual impunity. This is because the doctrine of sovereign immunity protects state governments from liability. This leaves businesses that deal with the government without a way to recover for the misappropriation of their trade secrets. This result is especially damaging because once a trade secret is no longer …

Teaching Trade Secret Management With Threshold Concepts, Haakon Thue Lie, Leif Martin Hokstad, Donal O'Connell

Secrecy and Society

Trade secret management (TSM is an emerging field of research. Teaching trade secret management requires the inclusion of several challenging topics, such as how firms use secrets in open innovation and collaboration. The threshold concepts framework is an educational lens well suited for teaching subjects such as TSM that are transformative and troublesome. We identify four such areas in trade secret management and discuss how threshold concepts can be a useful framework for teaching. We then present an outline of a curriculum suited for master’s programs and training of intellectual property (IP) managers. Our main contribution is to fields of …

Vaccine Clinical Trials And Data Infrastructure, Ana Santos Rutschman

All Faculty Scholarship

We find ourselves at a momentous turn in the history of vaccines. The COVID-19 pandemic triggered a quasi-global vaccine race that not only compressed vaccine research and development (R&D) timelines, but also paved the way for the administration of a new type of vaccine technology – mRNA vaccines, which work in substantially different ways from the vaccines in use before the pandemic.

While the process of bringing emerging COVID-19 vaccines to market has taken place in an unusually short timeframe, it was largely predicated on the same scientific and regulatory processes that govern the development, approval and deployment of new …

Race Cartels: How Constructor Collaboration Is Curbing Innovation In Formula 1, Chandler C. Gerard-Reimer

Vanderbilt Journal of Entertainment & Technology Law

Formula 1 is in the midst of a copycat scandal: technology has made it possible for teams to reverse engineer clones of competitors’ race cars. This is a less than ideal state of affairs for the championship series, which prides itself on being the pinnacle of motorsport and automotive innovation, thanks in large part to the cars’ rapid rate of technological advancement. In order to address this problem, the Fédération Internationale de l’Automobile (FIA), Formula 1’s governing body, must increase independent innovation efforts by amending the technical regulations to restrict the extent of presently allowed inter-team collaboration. Worried that the …

Confronting The Biased Algorithm: The Danger Of Admitting Facial Recognition Technology Results In The Courtroom, Gabrielle M. Haddad

Vanderbilt Journal of Entertainment & Technology Law

From unlocking an iPhone to Facebook “tags,” facial recognition technology has become increasingly commonplace in modern society. In the wake of the Black Lives Matter movement and call for police reform in the United States, it is important now more than ever to consider the implications of law enforcement’s use of facial recognition technology. A study from the National Institute of Standards and Technology found that facial recognition algorithms generated higher rates of false positives for Black faces—sometimes up to one hundred times more false identifications—than white faces. Given the embedded bias of this technology and its increased prevalence, the …

“We Don't Want Our Competitors To See It:” Protecting Race Car Engines As A Trade Secret, Kerri Cebula

Marquette Sports Law Review

No abstract provided.

Data As The New Oil: A Slippery Slope Of Trade Secret Implications Greased By The California Consumer Privacy Act, Megan Marie Miller

Cybaris®

Following the European model of the General Data Protection Regulation (GDPR), the state of California implemented the California Consumer Privacy Act (CCPA) on January 1, 2020. The CCPA allows any California consumer to demand to see all of the information that a company has saved on them; consumers can also request a full list of all the third parties that their data is shared with, sold to, and for what commercial purpose. This paper reviews the implications of a new law on the disclosure of trade secrets like client lists and algorithms that manipulate consumers’ data. Ultimately, the issue comes …

Privacy Vs. Transparency: Handling Protected Materials In Agency Rulemaking, Christopher S. Yoo, Kellen Mccoy

All Faculty Scholarship

Agencies conducting informal rulemaking proceedings increasingly confront conflicting duties with respect to protected materials included in information submitted in public rulemaking dockets. They must reconcile the broad commitment to openness and transparency reflected in federal law with the duty to protect confidential business information (CBI) and personally identifiable information (PII) against improper disclosure.

This Article presents an analysis of how agencies can best balance these often-countervailing considerations. Part I explores the statutory duties to disclose and withhold information submitted in public rulemaking dockets placed on agencies. It also examines judicial decisions and other legal interpretations regarding the proper way to …

The Trade Secrecy Standard For Patent Prior Art, Sharon Sandeen, Camilla A. Hrdy

Faculty Scholarship

A fundamental criterion of patentability is that an invention must be new as compared to the prior art—the corpus of preexisting knowledge and technology already available to the public. If an invention is in the prior art, or rendered obvious by it, it cannot be patented.

The U.S. Patent Act has traditionally envisioned a categorical approach for deciding what counts as prior art. Under this approach, courts are supposed to decide whether a particular disclosure about the invention (a reference) falls within one of the categories listed in Section 102 of the Patent Act, such as “described in a printed …

Contracting For Algorithmic Accountability, Cary Coglianese, Erik Lampmann

All Faculty Scholarship

As local, state, and federal governments increase their reliance on artificial intelligence (AI) decision-making tools designed and operated by private contractors, so too do public concerns increase over the accountability and transparency of such AI tools. But current calls to respond to these concerns by banning governments from using AI will only deny society the benefits that prudent use of such technology can provide. In this Article, we argue that government agencies should pursue a more nuanced and effective approach to governing the governmental use of AI by structuring their procurement contracts for AI tools and services in ways that …

Digitizing Scent And Flavor: A Copyright Perspective, Amara Lopez

Michigan Technology Law Review

Should the flavor of a cheese fall under copyright protection? The Court of Justice of the European Union recently confronted this question in Levola Hengelo BV v. Smilde Foods. Although the court ultimately denied protection, its reasoning opened many doors for those seeking intellectual property protection for scents and flavors. The court implied that it was the subjective nature of a cheese flavor that bars it from enjoying the protection copyright affords, which begs the question of what would happen if there were a sufficiently objective way to describe a flavor.

Recent developments in technology have led to the digitization …

Engaging First Year Students With Intellectual Property, Marian G. Armour-Gemmen

Faculty & Staff Scholarship

Since intellectual property is so important to engineers, creating enthusiasm from the beginning of their engineering studies is imperative. Since first year students have not learned how to apply technological concepts to real life, demonstrating intellectual property could be a challenge. To engage first year engineering students in the concept and the value of intellectual property, students were introduced to basic concepts and applications. Different concepts were applied to real life examples allowing them to interface with technology from an intellectual property perspective. This paper highlights not only patents, but also trademarks and trade secrets.

The Defend Trade Secrets Act And Foreign Theft: The Application Of The Act To Extraterritorial Misappropriation, John Dustin Hawkins

Journal of Intellectual Property Law

This Note explores the evolution of federal trade secret law in the United States, particularly the enactment of the Defend Trade Secrets Act of 2016. Part II discusses the legislative history of the Act, as well as key provisions and definitions of the Act, which are critical when considering the DTSA's extraterritorial application. Additionally, this Note considers the tests used by courts to determine extraterritorial application in other areas of U.S. law. Part III explains why a uniformly-applied balancing test would best serve the courts in determining the extraterritorial application of the DTSA to reach foreign conduct.

More “Substantial Harm” Than Good: Recrafting Foia’S Exemption 4 After Food Marketing Institute V. Argus Leader Media, Jane E. Kirtley, Scott Memmel, Jonathan Anderson

Mitchell Hamline Law Review

No abstract provided.

Secret Conviction Programs, Meghan J. Ryan

Faculty Journal Articles and Book Chapters

Judges and juries across the country are convicting criminal defendants based on secret evidence. Although defendants have sought access to the details of this evidence—the results of computer programs and their underlying algorithms and source codes—judges have generally denied their requests. Instead, judges have prioritized the business interests of the for-profit companies that developed these “conviction programs” and which could lose market share if the secret algorithms and source codes on which the programs are based were exposed. This decision has jeopardized criminal defendants’ constitutional rights.

Note: Fracking Fluids: Regulatory Disclosure And Trade Secret Ingredients, Alison Ibendahl

Notre Dame Journal on Emerging Technologies

The Note reviews current law, policy, and politics that are part of the discussion around disclosing fracking fluid trade secrets. Part I of this paper provides a background of fracking, why it is valuable, and intellectual property regimes used by owners of fracking relating to intellectual property. Part II reviews the regulatory takings doctrine, trade secret law and the interaction between them. Current disclosure laws, the policy considerations of disclosure law, and political attitudes towards fracking are discussed in Part III. This review concludes with general comments on current disclosure and the potential changes to regulations.

Ebay, Permanent Injunctions, And Trade Secrets, Elizabeth A. Rowe

UF Law Faculty Publications

This Article presents the first qualitative empirical review of permanent injunctions in trade secret cases. In addition, it explores the extent to which the Supreme Court’s patent decision in eBay v. MercExchange has influenced the analysis of equitable principles in federal trade secret litigation. Among the more notable findings are that while equitable principles are generally applied in determining whether to grant a permanent injunction to a prevailing party after trial, the courts are not necessarily strictly applying the four factors from eBay. The award of monetary relief does not preclude equitable injunctive relief, and courts can find irreparable harm …

Trade Secrets And The Right To Information: A Comparative Analysis Of E.U. And U.S. Approaches To Freedom Of Expression And Whistleblowing, Sharon Sandeen, Ulla-Maija Mylly

Faculty Scholarship

Both the EU Trade Secrets Directive and US trade secret law seek to balance the protection of trade secrets against other values, including freedom of expression, but the EU Trade Secret Directive is more explicit about the need to do so. This article examines EU and US trade secret law through the right to information, a recognized human right under the Universal Declaration of Human Rights and implementing laws and conventions. In particular, it discusses how principles of freedom of expression and whistleblowing should apply in the trade secret context in the EU and U.S.

Taxation And Human Rights: A Delicate Balance, Reuven S. Avi-Yonah, Gianluca Mazzoni

Book Chapters

This chapter assesses the appropriate balance between strengthening tax revenue collection tools to ensure states have adequate resources to meet their human rights obligations, and protecting taxpayer rights to privacy and data security. On the one hand, the ability of rich residents of developing countries and multinational corporations operating in those countries to evade or avoid taxation is directly linked to violations of human rights in those countries, especially from the perspective of social and economic rights like health and education. Providing such countries with the means to fight back and collect adequate revenues is essential in advancing such rights. …

Data Exclusivities And The Limits To Trips Harmonization, Peter K. Yu

Florida State University Law Review

No abstract provided.

The Adr Loophole To Restrictive Non-Compete Agreements, Jad Itani

Marquette Intellectual Property Law Review

This Comment considers a key question: do employers have a strategy to protect themselves if these restrictive states are restricting corporations from protecting their self-developed trade secrets? In doing so, Part II will discuss an approach that may allow employers to potentially circumvent the restrictive states. This can be achieved by requiring an employee to undergo private arbitration in a dispute with an employer—a strategy that has gained validity in light of the United States Supreme Court’s holding that upholds arbitration clauses even where significant public policy concerns exist. Specifically, an employer in a restrictive state could potentially enforce an …