When a lower-level employee uses a former employer's trade secrets after taking a new job, the plaintiff often sues the new employer itself and demands exemplary damages under the Uniform Trade Secrets Act ('UTSA') — even if the new employer was unaware of, and disapproves of, the employee's conduct. Taking a page from the law of employment discrimination, we believe that companies that provide intellectual property training for their workforce can use the fact of such training during litigation to avoid exemplary damages for the solitary wrongdoing of non-executive-level employees and perhaps avoid vicarious liability altogether. Companies, especially technology startups, can reduce trade secret litigation and liability risks by implementing such programs — programs which today are very rare, even in Silicon Valley.
- September 01, 2006Tait Graves and Jason Williams
Default JudgmentPreponderance of EvidenceStatutory DamagesSufficiency of Pleading
September 01, 2006ALM Staff | Law Journal Newsletters |Hedge funds have gone Hollywood. Chasing high returns, money managers are plunking down hundreds of millions of dollars to finance films such as 'Superman Returns' and 'Nanny McPhee.' At the same time, the influx of money from hedge funds and private-equity firms is reshaping film-financing deals, leading entertainment lawyers toward lucrative transactions and new clients who might want a little glamour-by-association.
September 01, 2006Kellie SchmittCopyright Infringement/Chain of Song OwnershipVideo-Game Laws/Constitutionality
September 01, 2006ALM Staff | Law Journal Newsletters |The U.S. District Court for the Southern District of New York decided that Bridgeport Music didn't breach a mechanical-licensing agreement by filing a copyright-infringement suit against its licensee for granting digital-download licenses to third parties.
September 01, 2006ALM Staff | Law Journal Newsletters |Like other sectors of the entertainment industry, the film industry is looking to the digital age for new revenue streams. Even with digital-piracy concerns, film studios are positioning themselves to capitalize on Internet sales of their products. This summer, for example, motion pictures from several major studios and key independent providers became available on CinemaNow for downloading and copying by consumers for DVD-machine play. In the following interview ' conducted by Entertainment Law & Finance Editor-in-Chief, Stan Soocher ' George A. Cooke, a law partner in the New York office of Manatt, Phelps & Phillips, discusses distribution of motion pictures in the digital age.
September 01, 2006ALM Staff | Law Journal Newsletters |In 1976 and again in 1998, Congress extended subsisting copyrights, by 19 and 20 years respectively. See Pub. L. 94-553, 90 Stat. 2541 (1976) (extending renewal term for pre-1978 works to 47 years, for 75 years total protection); Pub. L. 105-298, 112 Stat. 2827 (1998) (extending renewal term for pre-1978 works an additional 20 years, for 95 years total protection). Seeking to allow authors and their kin to share in the benefits of the newly extended terms, Congress afforded them a mechanism known as statutory termination. See 17 U.S.C. '304(c) and (d). The mechanism allows abrogation of contracts executed prior to Jan. 1, 1978, otherwise valid under state law, by which an author (or certain other specified persons) had transferred away copyright interests. To bolster and protect this termination right, Congress mandated that it may be effected 'notwithstanding any agreement to the contrary.' 17 U.S.C. '304(c)(5); see also 17 U.S.C. '304(d)(1).
August 31, 2006Jason Linder, Eric Carsten, and Annette MeyersonThe lion's share of business method and e-commerce patents is grouped in the now infamous Class 705 at the U.S. Patent and Trademark Office ('USPTO'). This specialized class that encompasses data processing involving financial, business practice, management, and cost/price determination has experienced a surge in popularity rivaled only by the likes of nanotechnology. From 2001 to 2005, more than 5000 U.S. patents were issued in Class 705. Growth in 705 patenting has been so pronounced that this 5-year period has produced about the same number of new patents as the previous 15-year period.
August 31, 2006William G. Pecau and Seth A. Watkins, Ph.D.Highlights of the latest franchising news from around the country.
August 31, 2006ALM Staff | Law Journal Newsletters |Highlights of the latest franchising cases from around the country.
August 31, 2006Darryl A. Hart