Trade Secret Report

• Jurisdiction: United States,Federal
• Citation: Vol. 47 No. 2
• Publication year: 2022
• Author: Conor Tucker

TRADE SECRET REPORT

Conor Tucker
Wilson Sonsini Goodrich & Rosati

TRADE SECRETS—DTSA "REASONABLE MEASURES" TO MAINTAIN SECRECY

Turret Labs USA, Inc. v. Cargosprint LLC, No. 21-952, 2022 WL 701161 (2d Cir. Mar. 9, 2022).

The Second Circuit affirmed dismissal of this trade secret case, finding that the plaintiff had alleged insufficient "reasonable measures" to maintain secrecy. The court held that what is "reasonable" depends on the nature of the trade secret itself, and "where an alleged trade secret consist primarily, if not entirely, of a computer software's functionality—functionality that is made apparent to all users of the program—the reasonableness analysis will often focus on who is given access, and on the importance of confidentiality and nondisclosure agreements to maintaining secrecy." Plaintiff did not allege any confidentially or nondisclosure agreements governing the use of its software. Further, individuals "could simply be given access...and view and replicate [the program's] functionality." "In the absence of nonconclusory allegations that it took reasonable measures to keep its information secret, [plaintiff] has not plausibly alleged...misappropriat[ion] of a 'trade secret.'"

TRADE SECRETS—MISAPPROPRIATION ESTABLISHED IN INTERNATIONAL ARBITRATION UNDER FOREIGN LAW MAY BE COLLATERAL ESTOPPEL IN LATER DTSA LITIGATION

Medimpact Healthcare Sys., Inc. et al. v. Iqvia Holdings, Inc. et al., No. 19-cv-1865-GPC(DEB), Dkt. 337 (S.D. Cal. Mar. 10, 2022).¹

The court addressed whether collateral estoppel (issue preclusion) foreclosed defense against plaintiffs' DTSA claim. The parties (or their privies) had previously submitted a dispute to an international arbitration. Plaintiffs had alleged multiple grounds for trade secret...