Tag Archives: trade secret

Former Employee Sentenced for Trade Secret Theft

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Yesterday, I told you about the DuPont trade secret case. Today, I would like to point out that employees can also be in voilation of state and federal trade secret law.

A former Motorola employee has been sentenced to four years in prison for trade secret theft. Hanjuan Jin’s sentence is one of the harshest in the history of criminal trade secret theft prosecutions.

The case sounds more like a spy novel. Jin was boarding a flight to Beijing when a U.S. Customs officer stopped her as part of a random check. The subsequent search revealed that Jin had $30,000 in cash and Motorola documents marked “confidential and proprietary information” in her carry-on bag.

As I have previously discussed, the Economic Espionage Act of 1996 criminalizes trade secret theft committed for personal benefit within the country or for the benefit of a foreign government. While the court did not find sufficient evidence to prove that the theft was intended to benefit the Chinese government, it did convict Jin of economic espionage under Section 1832.

As highlighted by the Chicago Tribune, U.S. District Court Judge Ruben Castillo emphasized the value of innovation during Jin’s sentencing. “In today’s world, the most valuable thing that anyone has is technology,” Castillo said. “The most important thing this country can do is protect its trade secrets.”

Protecting against trade secret misappropriation should not just be an important priority for the federal government, but for all businesses.

How Can I Help?

If you need help to keep your secrets or determining how best to protect your ideas, or know someone that can use my help, please contact me for a free 30 minute consultation at nvantreeck@usip.com or call TOLL FREE at 1-855-UR IDEAS (1-855-874-3327) and ask for Norman.

– Ex astris, scientia –

I am and avid amateur astronomer and intellectual property attorney. As a former Chief Petty Officer in the U.S. Navy, I am a proud member of the Armed Service Committee of the Los Angeles County Bar Association working to aid all active duty and veterans in our communities. Connect with me on Google +

Norman

You are hereby banned!

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DuPont Co. was recently awarded a 20-year permanent injunction in a trade secrets misappropriation case involving its Kevlar technology. The court order bans Korean textile maker Kolon Industries Inc. from making a competing high-strength fiber.

The court order demonstrates the severity of the remedies available in a trade secrets case. Kolon was already ordered by a federal jury to pay DuPont $919.9 million in damages last September.

The lawsuit involved the theft of 149 trade secrets relating to DuPont’s high-strength synthetic fiber used in bulletproof vests, military helmets, tires, brakes and fiber-optic cables. DuPont alleged that Kolon recruited its former employees and used DuPont’s proprietary business information to create its competing product, Heracron fiber.

In instituting the lengthy injunction, U.S. District Judge Robert Payne noted that the damages award would not prohibit Kolon from using the stolen trade secrets at DuPont’s expense. As detailed by Reuters, Payne further stated that DuPont might have to go to South Korea to enforce the judgment.

“That Kolon found it necessary as a matter of corporate policy to misappropriate DuPont’s trade secrets to augment the knowledge and efforts of its own research staff illustrates that, left to its own devices, Kolon simply would not have developed the trade secrets it misappropriated,” Payne wrote. Kolon has requested that the injunction be stayed pending an appeal.

This case demonstrates the significant economic impacts of trade secret misappropriation. The ruling in this case, if upheld, will likely have a significant impact on the future success and failure of both companies involved.

How Can I Help?

If you need help to keep your secrets or determining how best to protect your ideas, or know someone that can use my help, please contact me for a free 30 minute consultation at nvantreeck@usip.com or call TOLL FREE at 1-855-UR IDEAS (1-855-874-3327) and ask for Norman.

– Ex astris, scientia –

I am and avid amateur astronomer and intellectual property attorney. As a former Chief Petty Officer in the U.S. Navy, I am a proud member of the Armed Service Committee of the Los Angeles County Bar Association working to aid all active duty and veterans in our communities. Connect with me on Google +

Norman

Picture Day!

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It had to happen sometime.  Today was the day that we are taking new photos for the firm’s web site.  I’ll post the new one once the photographer has photshopped me into greatness!  Well, maybe not greatness, just handsome like Tom Cruise, Ashton Kutcher, or Channing Tatum.  Personally, I don’t think there are enough presets in to world to make that happen.  So, to assist my makeover the lovely Renee Garafano from Glendale SalonSpa worked on me for what seemed like hours, but was actually only a couple of minute.  She is really good, so you might want to go to her spa for some special treatment.

And so it begins!

A nose job.

What have I gotten myself into!  Like Picasso preparing to paint, Renee prepares to apply…I don’t actually know what is being applied.

A break in the action while Renee refilled the make case.  I’m sure she didn’t expect to have to cover THIS much real estate.

Finishing touches, then: Lights, Camera, Action!

If you need help determining how best to protect your ideas, or know someone that can use my help (with or without makeup!), please contact me for a free 30 minute consultation at nvantreeck@usip.com or call TOLL FREE at 1-855-UR IDEAS (1-855-874-3327) and ask for Norman.

Listen if You Dare!

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You can find my very interesting radio show here at www.AdrenalineRadio.com and visit the Podcast – Now Playing section of the website.
Or if you prefer you can listen and download via iTunes at http://itunes.apple.com/us/podcast/adrenalineradio.com-weekly/id469932916

Be kind, this was our first time.  I don’t think we did too bad considering the subject matter.

Danton Mak, a partner at the firm and I did a one hour show this past week discussing intellectual property in general.  However, if you have an idea that needs protecting, please contact me for your free 30 minute consultation at nvantreeck@usip.com or call TOLL FREE at 1-855-UR IDEAS (1-855-874-3327) and ask for Norman.

The Number of Female Patent and Trademark Holders is Surging

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The number of women obtaining patents and trademarks in the United States has dramatically increased over the past several years, according to a new study conducted by the National Women’s Business Council. Researchers examined data obtained from the U.S. Patent and Trademark Office (USPTO) to determine the number of patents and trademark granted to women between 1975 and 2010. The overall conclusion was  that “U.S. based women demonstrate increasing leadership in patent and trademark activities.”

In 2010, 33 percent of all trademarks granted to individuals and sole proprietorships went to women. Meanwhile, women held 18 percent of all patents granted in 2010, doubling the percentage held in 1990.

Also:

• The number of patents granted to women increased by approximately 34.72% from 2009 to 2010.

• The highest sustained rate of increase in the grant of U.S. patents to women was in the 1986-1993 period.

• The participation of women in Trademark activity as measured by the percentage of Trademarks granted has more than doubled in the period between 1980 to 2010, from approximately 16.5% in 1980 to more than 33% in 2010.

• Women have a significantly higher participation in Trademark activity as compared to Patent activity. For instance, whereas women received approximately 18% of all patents granted in the year 2010, the contribution of women to Trademark activity was more than 33%.

Congratulations!

If you have an idea that needs protecting, please contact me for your free 30 minute consultation at nvantreeck@usip.com or call TOLL FREE at 1-855-UR IDEAS (1-855-874-3327) and ask for Norman.  Feel free to ask for one of our very knowledgable female attorneys (like Laura or Katherine) too!

How to Copyright Software

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Software code can be registered as a literary work with the copyright office. In fact, copyright registration often affords the best legal protection for your software program. That’s because copyright registration not only ensures that no one may copy, distribute, or display the software without your permission, but also allows you to pursue legal action against infringers. In some cases, software copyright registration is a relatively easy process. In fact, if your application is filed online, the source code may be uploaded electronically in PDF format. Otherwise, you will need to print out the code and submit it with your paper application.  I don’t recommend that you file paperwork with the copyright office.  They have made statement to the effect that it will be years before they look at any paper filed copyright applications.  Use electronic filing (its cheaper too).

Here  are a few additional considerations-

1.  Software Programs Without Trade Secrets:

You are required to submit one copy identifying portions of the program (generally the first 25 and
last 25 pages of source code), together with the page containing the copyright notice (you should have a copyright notice placed in the header and footer of ALL your code). For a program less than 50 pages in length, applicants should send the entire source code.

2.  Software Programs With Trade Secrets:

If the software program contains trade secrets, you must include a cover letter stating that the claim contains trade secrets, along with the page containing the copyright notice (see above).  You  must also submit one of the following:

• First 25 and last 25 pages of source code with portions containing trade secrets blocked out,

• First 10 and last 10 pages of source code alone, with no blocked out portions,

• First 25 and last 25 pages of object code plus any 10 or more consecutive pages of source code, with no blocked- out portions, or

• For programs 50 pages or less in length, entire source code with trade secret portions blocked out.

Special Concerns for Web-Based Software:

If the software is available, online, you must submit identifying material for the screen displays in addition to the required source code.  The identifying material for the screen displays should be images or printouts clearly showing the screens. If using online registration, images of the screens may be uploaded electronically to the Copyright Office.

Revised Software Programs (ie. Version 2.0 of your software):

Each separately published version of a software program that contains new, copyrightable authorship must be registered separately, with a new application and fee. Registration of the first version may extend to the entire work if it contains no previously published or registered portions. Registration of any subsequent version covers only the new or revised material added to that version.

In many cases, it is advisable to consult with an experienced copyright attorney before seeking to register your software program to ensure your rights are protected.  Please contact me to schedule your free 30-minute consultation by email at nvantreeck@usip.com or call TOLL FREE at 1-855-UR IDEAS (1-855-874-3327) and ask for Norman.

How To Protect Your Trade Secrets

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As you may have heard, one of the country’s most closely guarded trade secrets has changed locations. Coca-Cola has created a high security vault in Atlanta to house its “secret formula” for the popular soft drink.

Until this week, the only official written copy was allegedly kept under lock and key in a bank vault. According to the myth surrounding the trade secret, only two people at any given time are allowed to be privy to secret recipe. The same two people are prohibited from taking the same plane in the event it crashes, and the trade secrets are taken to the grave.

Of course, not all businesses can afford to go to such great lengths to protect their trade secrets. However, you should take reasonable steps to protect your confidential information.

Below are a few practices that all businesses can employ:

  • Have all employees, independent contractors, and temporary personnel execute confidentiality agreements. These agreements should define the term trade secrets, limit how employees can utilize trade secrets, and outline the legal repercussions if they breach the agreement.
  • Train employees, independent contractors, and temporary personnel about how to manage confidential information.
  • Clearly designate any information that the company considers confidential. This can be as easy as stamping “confidential and proprietary” on it.
  • Limit access to confidential information to a “need to know” basis. Use security measures such as locked file cabinets or password protection to prevent others from accessing it.
  • Require vendors, suppliers, and potential customers to sign non-disclosure agreements if they will encounter confidential and proprietary information.
  • Advise employees, independent contractors, and temporary personnel that any confidential information that they create on behalf of the company is the property of the company.
  • Take steps to ensure that all confidential information is returned or destroyed when employees, independent contractors, and temporary personnel terminate their relationship with the company.

Of course, these are only a few general tips. To ensure that your company’s trade secrets are thoroughly protected, it is a good idea to consult with an experienced intellectual property attorney.  If I can help you in any way, please contact me.