Trade Secrets

If Lady Gaga tweets your trade secret, is it still a trade secret?

August 29, 2011 | by Eric B. Meyer

In a matter of minutes, or even seconds, a single tweet may reach thousands or, possibly, millions of people. Now, just imagine if that tweet contained proprietary information. (You know, like if Lady Gaga tweeted the code to Microsoft Windows 7 to her millions of followers). Ummm…work with me here…

But, even in the days before Twitter, publishing content on a blog or a message board meant putting information out in the public domain for anyone — including a competitor — to view. What if that information was supposed to be confidential? Does a trade secret lose its legal trade-secret status if it is published on the internet? Find out the answer after the jump…

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Is a non-compete agreement signed months after work begins enforceable?

June 1, 2011 | by Eric B. Meyer

I was reading a blog post from Jennifer L. Gokenbach at the Colorado Employer’s Law Blog, discussing how, as of yesterday, Colorado deems continuation of at-will employment to be sufficient consideration to support a non-competition agreement. In non-lawyer speak, that means that if an employee signs an agreement not-to-compete in Colorado after the employee starts working, on the condition that if the employee does not sign the agreement then the employee will be fired, the employer may later enforce that agreement.

That’s now the law in Colorado. Is that also the law in PA, NJ, and DE?

Delaware: Yes. Research & Trading Corp. v. Powell, 468 A.2d 1301, 1305 (Del.Ch.1983).

New Jersey: Yes. Hogan v. Bergen Brunswiq Corporation, 153 N.J.Super. 37, 378 A.2d 1164 (App.Div. 1977).

Pennsylvania: No. An agreement not to compete with a former employer must be supported by new consideration; i.e., a change in the conditions of employment (e.g., a raise, promotion, or other financial benefit). Maintenance Specialties, Inc. v. Gottus, 455 Pa. 327, 314 A.2d 279, 280 (Pa. 1974).

Misclassifying an employee may void a non-compete agreement

April 19, 2011 | by Eric B. Meyer

In an unpublished opinion, the Third Circuit Court of Appeals denied a Pennsylvania company’s attempt to enjoin a former employee, who had entered into several restrictive covenants with the company, to compete directly against the company and solicit its customers.

What did this employer do wrong and how can you learn from its mistakes?

After the jump…

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4 ways employers can protect themselves when employees leave

January 19, 2011 | by Eric B. Meyer

This story that I wrote with my Dilworth Paxson LLP colleague, David Laigaie, the Chair of Dilworth’s Corporate Investigation/White Collar Group, recently appeared in The Legal Intelligencer. If you operate a business in Pennsylvania and you have trade secrets, employees with non-solicitation agreements, or non-competition agreements, then take a few minutes and read this article. You’ll be glad you did.

Can employees use your confidential documents to prove discrimination?

December 13, 2010 | by Eric B. Meyer

If you are reading this and you are a New Jersey employer, then the answer is yes. But only under certain circumstances. I’ll lay out the test for you after the jump.