Reasonable Measures Podcast

In this episode, Tim and Chris discuss the reversal and remand of the Appian Pegasystems case, which involved a $2 billion damages award. The original case gained attention for its massive damage award and the systematic theft of trade secrets by Pegasystems. The reversal and remand were based on issues of evidence and causation, with the damages calculation not accurately connecting to the trade secrets. The case is still ongoing, with an appeal of the appeal and the possibility of a new trial. The episode also mentions the use of insurance policies to protect against damages and the potential for refiling the case under the DTSA.

In this episode, Tim and Chris discuss a recent trade secret misappropriation case in China, which resulted in a record-breaking judgment of 640 million RMB (about 88 million USD). They highlight the significance of this case in recognizing the value of trade secrets and protecting companies from misappropriation. The case involved a wholesale movement of 40 employees from one Chinese electric vehicle company to another, resulting in the filing of 12 patent applications by the new company. The court considered factors such as the quick release of products and the publication of patents to establish the misappropriation of trade secrets. The discussion also touches on the challenges of enforcing judgments and the evolving legal landscape in China.

Imagine suing your former graduate students for stealing trade secrets to the tune of $849M in damages, but losing the case and having to pay them $26.6M. SigmaPharm Laboratories v. ex-employees is a highly unusual case that touches on a wide range of issues from promises of start-up equity to employees leaving to work on similar technologies. You won’t find many cases with these fact patterns!

Additional reading:
https://www.proskauerontradesecrets.com/2024/05/employee-mobility-and-trade-secrets-in-the-golden-era-of-life-sciences-innovation/

https://www.law.com/thelegalintelligencer/2024/05/06/group-of-fired-scientists-win-26-6m-bucks-county-verdict-on-counterclaims-against-ex-employer/

Zunum thought they had the perfect partner. Boeing cheated and left them at the alter.

Tim & Chris pick apart the recent Zunum decision where they were awarded $81.2 million total on the trade secrets misappropriation claims and an additional $11.6 for tortious interference. The jury also found that Zunum failed to mitigate about $20.8 million in damages, however, reducing the total award to about $72 million.

Here’s the case on Google Scholar:
https://scholar.google.com/scholar?scidkt=984552710791829331&as_sdt=2&hl=en

Further Reading:

https://www.iam-media.com/trade-secrets/article/partners-rivals-collaboration-contamination-perils-in-zunum-v-boeing

https://irwinip.com/2024/06/the-pitfalls-of-proprietary-information-boeing-hit-with-72m-trade-secrets-verdict/

Tim and Chris discuss how trade secret owners can use the ITC (International Trade Commission) as a way to block goods from being imported into the USA. This is an interesting, and very different, alternative to traditional lawsuits in state or federal court.

Tim and Chris turn their focus to the post FTC fight and the three cases looking to upend the ban on non-compete agreements.  They also take a peak at Jane Street vs. Millennium Management case where two ex-employees accused of stealing trade secrets.

Tim and Chris discuss an ongoing case, VANDA PHARMACEUTICALS v. United States, which highlights the potential trade secret misappropriation by an FDA official!!  This is preceded by a quick discussion of the FTC decision to ban non-compete agreements.  More on that topic next week!

Tim and Chris talk about Plintron Technologies trade secret misappropriation case against some former executives, and Chris’s recent trip to India to spend time with our investor and partner Wipro and their legal services team.