Non-Competes / Trade Secrets Archives - Page 2 of 13

Federal Court Decision Creates Greater Uncertainty as to Future of FTC Final Rule on Noncompete Clauses

In what some view to be a surprise development, the Eastern District of Pennsylvania issued a decision in ATS Tree Services v. FTC on July 23 affirming enforceability of the FTC’s Noncompete Rule, which designates most noncompete clauses as unenforceable after September 4, 2024. All eyes now turn to the Northern District of Texas, where the Ryan v. FTC court has promised a final decision on or before August 30. Most expect that the Ryan court’s final decision will continue to hold that the FTC did not have authority to issue the Final Rule, creating a split of authority.

To view the full alert, visit the Faegre Drinker website.

Seventh Circuit Confirms Extraterritorial Reach of the Defend Trade Secrets Act

Under Motorola v. Hytera, a trade secret plaintiff can recover damages in the United States even on infringing sales that occurred outside the United States. The Seventh Circuit in Motorola confirmed that the Defend Trade Secrets Act can reach all of a defendant’s worldwide sales caused by the misappropriation, so long as — in the words of 18 U.S.C. § 1837(2) — “an act in furtherance” of the misappropriation was committed in the United States. As a result of the expansive reach of the Defend Trade Secrets Act, even in cases where the trade secret theft occurs mostly outside the United States, trade secret owners should consider whether they are still able to recover damages for foreign infringing sales in a U.S. court under the statute.

To view the full alert, visit the Faegre Drinker website.

Another Minnesota Noncompete Ban: Restrictive Covenants in Service Contracts

Minnesota continues to expand its restrictions on noncompete agreements and similar restrictive covenants. Last year, the legislature banned noncompete agreements between an employer and an employee. Now, a new law that went into effect July 1, 2024, prohibits agreements between service-provider companies and their customers that would prevent customers from hiring employees of those service providers.

To view the full alert, visit the Faegre Drinker website.

FTC Issues Final Rule Banning Employment Noncompete Agreements

On April 23, 2024, in a 3-2 vote along party lines, the U.S. Federal Trade Commission issued a final rule that will ban essentially all employment noncompete agreements nationwide. This alert dives into the key takeaways and what to expect next.

To view the full alert, visit the Faegre Drinker website.

Under New York Law, Trade Secret Damages Must Reflect Plaintiff’s Actual Loss, Not Just Defendant’s Wrongful Gain

A recent trade secret case from New York highlights the importance of how damages are calculated and emphasizes the need to conform those damages calculations to the applicable standards in your jurisdiction.

To view the full alert, visit the Faegre Drinker website.

The FTC Non-Compete Rule – It’s Finally Here (Almost)!

Yesterday, the Federal Trade Commission (FTC) announced that, next Tuesday, April 23, it will be releasing the final version of its proposed rule largely prohibiting employee non-competition restrictions. See FTC Announces Special Open Commission Meeting on Rule to Ban Noncompetes | Federal Trade Commission. The announcement will be preceded by a vote by the five FTC commissioners on whether to “authorize public disclosure of the proposed final rule.” Assuming that disclosure is authorized, which is expected, the FTC will present the rule and then vote to issue it. As of yet, there has been no indication whether the final rule will be the same as the proposed rule or, if not, what the changes will be.

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