Maryland Intellectual Property Lawyer & Attorney : Brian Wm. Higgins : Serving Baltimore, Columbia, Frederick

     Hat tip to the Womble Carlyle Trade Secret Blog for publishing interesting statistics about trade secret lawsuits filed in the US. In its post a few weeks ago, the Womble bloggers reported the results of their search of the Westlaw federal database (federal district, appeals and Supreme Court cases) for the term "trade secrets," which returned 905 cases for 2007. That was a 20% increase over the number of published cases in 2006 (754 cases), and a 231% increase since 1997 (273 cases). Check out their post for cautionary notes relating to the results. The bloggers' conclusion: "it would be hard to deny that something's going on."

     Womble's research also found that there were 79 cases reported in 2007 relating to the federal Computer Fraud & Abuse Act, which was a 46% increase over 2006 (54 cases), and a 780% increase over 1997 (1 case).

     Out of curiosity, I searched Lexis' "MD Federal & State Cases, Combined" database for "trade secrets" and found 7 reported cases in 2007, compared to 14 in 2006 (not all of which are actual trade secret cases):

• Phoenix Renovation Corp. v. Rodriguez, 2007 U.S. App. LEXIS 29253 (4th Cir. 2007) (unpublished)
  
  
• GO Computer, Inc. v. Microsoft Corp., 508 F.3d 170; 2007 U.S. App. LEXIS 26722 (4th Cir. 2007)
  
  
• Darden v. Peters, 488 F.3d 277; 2007 U.S. App. LEXIS 12115 (4th Cir. 2007), cert. denied, 2008 U.S. LEXIS 2125 (2008)
  
  
• DRC, Inc. v. Custer Battles, LLC, 2007 U.S. App. LEXIS 11518 (4th Cir. 2007) (unpublished)
  
  
• NaturaLawn of Am., Inc. v. West Group, LLC, 484 F. Supp. 2d 392; 2007 U.S. Dist. LEXIS 29774 (4th Cir. 2007)
  
  
• Tobacco Tech., Inc. v. Taiga Int'l N.V., 2007 U.S. Dist. LEXIS 13083 (D. Md. 2007)
  
  
• Conaway v. Deane, 401 Md. 219; 2007 Md. LEXIS 575 (Md. 2007)

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     Earlier this week, several sources reported that the Justice Department had announced an indictment of two Silicon Valley engineers who allegedly tried to steal trade secrets for computer chip designs (the indictment also included counts of economic espionage) (see details at the Ethisphere blog or the National Security Crimes Blog by Douglas McNabb). The indictment underscores the need for companies to go beyond just calling something a trade secret: steps must be taken to implement a comprehensive program to identify and adequately protect a company's most sensitive data (90% of which is usually in an electronic form according to published literature). However, even with the best safeguards, employees may try to steal trade secrets for personal gain. Fortunately, those who take trade secrets will usually leave behind a trail that electronic forensic experts can find.

     In Maryland, trade secrets are covered under the Maryland Uniform Trade Secrets Act (MUTSA). For purposes of the MUTSA, a trade secret is something that derives independent economic value from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use. A company believing its trade secrets have been stolen by employees or other entities may seek relief in civil court by asserting one or more of the following causes of action in Maryland:

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Below is a list of recent trade secret, patent, trademark, and copyright news, announcements, and other information of some interest:

Trade Secrets:

• The new Intellectual Property Section of the Maryland State Bar Association (a new web site) is hosting a seminar and Webinar entitled Theft of Intellectual Property, Trade Secrets and Proprietary Information: Forensic Traces to Make Cases on Friday, September 28, 2007, from 8:00 – 10:00 a.m. at the University of Maryland School of Law, Room 107.

Patents:

• The PTO has proposed new rules to improve patent quality and reduce pendency during prosecution:  see the Notice of Proposed Rulemaking in the Federal Register for details, or the PTO's announcement for a summary

Trademarks/Trade Names:

• The PTO has finalized new rules affecting Trademark Trial and Appeal Board rules:  see the Final Rule in the Federal Register for details
• Useful form:  registration application for a Maryland Trademark or Servicemark
• Useful form:  application for Maryland Trade Name
  

Copyrights:

• The launch of a new Internet-based electronic search system for copyright registrations and recordations is still scheduled for roll-out in "Mid August" according to a Copyright Office announcement

General:

• A newly-formed entity in Maryland called the Center for New Technology Enterprise will be opening its virtual doors soon.  Headed by veteran serial entrepreneur and CEO Fred Provorney, the Center will provide a comprehensive trans-disciplinary program for facilitating technology commercialization and fostering collaboration among universities, research institutions, governmental research facilities and other individuals and entities, whether public or private.  The Center should be well received, especially in Maryland, with its large number of start-up biotechnology and other high technology companies, major University research centers, and several Government laboratories and research organizations.  Check back here for more information about this venture. 

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