TRADE SECRETS A STATE-BY-STATE SURVEY
TRADE SECRETS: A STATE-BY-STATE - Bloomberg BNA
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NEW<br />
SUPPLEMENT!<br />
<strong>TRADE</strong> <strong>SECRETS</strong>:<br />
A <strong>STATE</strong>-<strong>BY</strong>-<strong>STATE</strong><br />
<strong>SURVEY</strong>, FOURTH EDITION,<br />
WITH 2012 SUPPLEMENT<br />
By Brian M. Malsberger<br />
Board of Review Associate Editors:<br />
David J. Carr, Arnold H. Pedowitz, and Eric Akira Tate<br />
Committee on Employment Rights and Responsibilities<br />
ABA Section of Labor and Employment Law<br />
> > > > > > > > > > ><br />
ALSO INSIDE:<br />
• Covenants Not to Compete: A Stateby-State<br />
Survey, Eighth Edition<br />
• Drafting and Enforcing Covenants<br />
Not to Compete, with 2012<br />
Cumulative Supplement<br />
• Employee Duty of Loyalty: A Stateby-State<br />
Survey, Fourth Edition,<br />
with 2012 Cumulative Supplement<br />
FREE<br />
30-DAY<br />
REVIEW<br />
Order online at<br />
www.bna.com/<br />
bnabooks<br />
and save 10%!<br />
• Employment at Will: A State-by-State Survey<br />
• Tortious Interference in the Employment Context: A State-by-State<br />
Survey, Third Edition, with 2012 Cumulative Supplement
2011/2 Volumes/2,944 pp.<br />
Hardcover with 2012<br />
Supplement<br />
Order #9102P/$585.00<br />
2012 Supplement alone:<br />
ISBN 978-1-61746-102-6<br />
Order #2102/$275.00<br />
NEW SUPPLEMENT!<br />
<strong>TRADE</strong> <strong>SECRETS</strong>: A <strong>STATE</strong>-<br />
<strong>BY</strong>-<strong>STATE</strong> <strong>SURVEY</strong>, FOURTH<br />
EDITION, WITH 2012 SUPPLEMENT<br />
By Brian M. Malsberger<br />
Board of Review Associate Editors:<br />
David J. Carr, Arnold H. Pedowitz, and Eric Akira Tate<br />
Committee on Employment Rights and Responsibilities<br />
ABA Section of Labor and Employment Law<br />
IN-DEPTH ANALYSIS of each state’s<br />
statutory and common law protection of<br />
trade secrets<br />
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::<br />
Trade Secrets: A State-by-State Survey, Fourth Edition<br />
provides authoritative, in-depth analysis of each state’s<br />
statutory and common law protection of trade secrets<br />
and other confidential business information, both within and outside the<br />
employment context.<br />
The Fourth Edition includes expanded discussion of:<br />
> > The inevitable disclosure doctrine<br />
> > The types of information granted or denied trade secret protection under the<br />
various Uniform Trade Secrets Acts<br />
> > The availability of injunctive relief and damages<br />
The treatise also addresses several issues as specific Additional Topics, including:<br />
amendments to complaint, consolidation, conspiracy, conversion, declaratory<br />
judgments, default judgments, directed verdicts, evidence (circumstantial), first-filed<br />
rule, forum selection clauses, gist of the action doctrine, interrogatories, supplemental<br />
jurisdiction, litigation privilege, ownership versus possession, questions of law, and<br />
sanctions. It also contains expanded discussions of the inevitable disclosure doctrine<br />
and important cross-references to other titles in the State-by-State Survey Series.<br />
The 2012 Supplement provides detailed analysis on:<br />
> > Types of information found to constitute a trade secret<br />
> > The inevitable disclosure doctrine<br />
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > ><br />
Summary of Contents<br />
Each State Chapter Addresses:<br />
State’s Definition of “Trade Secret”<br />
Courts’ Interpretations Under the Statute, Uniform Trade Secrets Act, or Common<br />
Law<br />
Policy Considerations Recognized by Courts<br />
Evidence Establishing the Elements of a Trade Secret and of a Misappropriation<br />
Claim<br />
Courts’ Justifications for Denial of Protection<br />
Types of Information Granted Trade Secret Protection<br />
Types of Relief Granted for the Misappropriation of Trade Secrets<br />
Level of Protection for “Proprietary Information”<br />
References to Law Review Articles/Other Publications<br />
Visit www.bna.com/bnabooks/tss for more detailed information.<br />
FREE 30-DAY REVIEW:<br />
Order online at www.bna.com/<br />
bnabooks and save 10%!
2012/3 Volumes<br />
Approx. 8,000 pp. Hardcover<br />
ISBN 978-1-61746-043-2<br />
Order #2043/$695.00<br />
NEW EDITION!<br />
COVENANTS NOT TO<br />
COMPETE: A <strong>STATE</strong>-<strong>BY</strong>-<br />
<strong>STATE</strong> <strong>SURVEY</strong>,<br />
EIGHTH EDITION<br />
By Brian M. Malsberger<br />
Board of Review Associate Editors:<br />
David J. Carr, Arnold H. Pedowitz, and Eric Akira Tate<br />
Committee on Employment Rights and Responsibilities<br />
ABA Section of Labor and Employment Law<br />
GET DETAILED GUIDANCE on the<br />
statutory and common law limits of<br />
covenant enforceability<br />
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::<br />
This respected and authoritative three-volume treatise delivers the information practitioners need<br />
to analyze, draft, and confidently litigate covenants not to compete and other restrictive covenants<br />
in the employment, partnership, franchise, license, and sale-of-business contexts.<br />
Courts all across the United States have resolved a number of questions of first impression<br />
that have a substantial and direct bearing on the enforceability of covenants not to compete<br />
in the nation today. Covenants Not to Compete: A State-by-State Survey discusses these<br />
decisions and identifies issues with significant splits of authority across the states, including<br />
whether the mere leasing of property to a competitor violates the terms of a noncompete<br />
clause where the clause fails to include language specifically prohibiting such action.<br />
Additional Topics at the end of relevant chapters address hundreds of make-or-break<br />
issues, including:<br />
> > Context characterization: service agreement versus employment context<br />
> > Effect of dissolution of employer<br />
> > Grace periods to cure breach not presumed<br />
> > Effect of entering into covenant in individual capacity<br />
This treatise also addresses questions of first impression concerning new state statutes that<br />
limit the enforceability of covenants not to compete executed by employees in the broadcasting<br />
industries, and contains expanded analysis of covenant-protectable interests in both actual and<br />
potential customer relationships. Other topics discussed in detail include effect of abandonment<br />
of a particular line of business, as well as the effect of abandonment of customers; judicial<br />
modifiability, restrictions involving physicians and other health care professionals; and much more.<br />
The new Eighth Edition is an indispensable reference providing insight and guidance on<br />
covenant enforceability. Important updates include expanded discussions of:<br />
> > Temporal and geographic limits of enforceable covenants not to compete<br />
> > Assignability of noncompetition covenants<br />
> > Consideration required to support a covenant executed well after the commencement<br />
of employment<br />
> > Protectable interests<br />
> > Remedies available for covenant breach, including injunctive relief and damages<br />
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > ><br />
Summary of Contents<br />
Each State Chapter Addresses:<br />
State Statutes Governing Enforceability, Employer’s Protectable Interests, Proof of Existence<br />
of a Covenant, Consideration Issues, Courts’ Power to Modify the Covenant, Obtaining<br />
a Preliminary Injunction, Establishing Irreparable Harm, Standard of Review on Appeal,<br />
Enforceability After Firing, Period of Injunction, Damages an Employer May Recover,<br />
Liquidated Damages Clauses, Choice of Law Rules, References to Law Review Articles/<br />
Other Publications, and Illustrative Cases<br />
The treatise also contains a comprehensive review of the law on such topics as:<br />
Ambiguity, Anticipatory Repudiation, Arbitration, Assignment, At-Will Employees, Attorney’s Fees,<br />
Bankruptcy, Change in Employee’s Work Territory, Corporate Practice of Medicine Doctrine,<br />
Effect of Employer’s Breach, Extension-of-Time Provisions, Independent Contractors, Inevitable<br />
Disclosure Doctrine, Malpractice, Physicians, Prospective Versus Actual Customers, Selective<br />
Enforcement, Statute of Frauds, Statute of Limitations, and Termination for Refusal to Sign<br />
The treatise also includes a highly detailed Table of Cases and six information-rich<br />
indexes of occupations, industries, and transactions at issue.<br />
Visit www.bna.com/bnabooks/cnc for more detailed information.
2009/2 Volumes/3,664 pp.<br />
Hardcover with 2012<br />
Cumulative Supplement<br />
Order #9054P/$595.00<br />
2012 Cumulative<br />
Supplement alone:<br />
ISBN 978-1-61746-054-8<br />
Order #2054/$240.00<br />
NEW CUMULATIVE SUPPLEMENT!<br />
EMPLOYEE DUTY OF<br />
LOYALTY: A <strong>STATE</strong>-<strong>BY</strong>-<br />
<strong>STATE</strong> <strong>SURVEY</strong>, FOURTH<br />
EDITION, WITH 2012 CUMULATIVE<br />
SUPPLEMENT<br />
By Brian M. Malsberger<br />
Stacey A. Campbell, David J. Carr, and Arnold H.<br />
Pedowitz, Associate Editors<br />
Committee on Employment Rights and Responsibilities<br />
ABA Section of Labor and Employment Law<br />
EASY ACCESS to explanations of causes<br />
of action, procedural issues, leading cases,<br />
and emerging trends for all 50 states and the<br />
District of Columbia<br />
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::<br />
Reflecting the rapid expansion of litigation concerning the<br />
application of the employee duty of loyalty, Employee Duty of Loyalty: A Stateby-<br />
State Survey, Fourth Edition is a meticulously researched reference detailing,<br />
by state, the recognition and understanding of this body of law, including prohibited<br />
and permitted conduct; litigation issues; and the availability of injunctive relief,<br />
damages, and defenses.<br />
Unique among titles on the subject, the Fourth Edition provides up-to-date analysis, by<br />
state, of conduct that breaches and conduct that does not breach the employee duty<br />
of loyalty. Extensive discussions of state law, broken out by category of employee—from<br />
“mere employees” to “officers and directors”—show the reader how the duty of loyalty is<br />
applied depending on the level of responsibility an employee has within an organization.<br />
This two-volume treatise also explores various other critical issues, including:<br />
> > Has a cause of action for breach of the employee duty of loyalty been recognized?<br />
> > What damages are available for breach of the employee duty of loyalty?<br />
> > Is a claim for breach of the employee duty of loyalty preempted by the<br />
Uniform Trade Secrets Act?<br />
Employee Duty of Loyalty: A State-by-State Survey, Fourth Edition includes<br />
Finding Lists and detailed chapter contents, appendices containing relevant<br />
Restatement excerpts, extensive quotations from the case law, and cross-references<br />
to other titles in the State-by-State Survey Series. This excellent, easy-to-scan,<br />
question-and-answer reference is the premier resource available on how each state<br />
addresses the employee duty of loyalty.<br />
The 2012 Cumulative Supplement, current through December 2011, provides<br />
updates on and expands the discussion of:<br />
> > Various types of conduct found to breach the duty of loyalty<br />
> > Available defenses<br />
> > Relief available for breaches<br />
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > ><br />
Summary of Contents<br />
Each State Chapter Addresses:<br />
How the State Defines Protectable Interests of<br />
Employers<br />
Procedural Issues<br />
Duty of Employee to Disclose Information,<br />
Corporate Opportunities, or Conflicts of<br />
Interest to Employer<br />
Prohibition Against Solicitation of the Employer’s<br />
Customers, Accounts, or Employees<br />
Limitations on Competition by Employee During<br />
and After Employment<br />
Prohibition Against Use of Employer’s<br />
Proprietary Information<br />
Prohibition Against Taking Kickbacks and Bribes<br />
Remedies<br />
Injunctive Relief<br />
Employee Defenses<br />
Distinctions Among Categories of Employees<br />
Illustrative Cases<br />
Law Review Articles/Other Publications<br />
Visit www.bna.com/bnabooks/edol for more detailed information.
2010/1,644 pp. Hardcover<br />
with 2012 Cumulative<br />
Supplement<br />
Order #9101P/$490.00<br />
2012 Cumulative<br />
Supplement alone:<br />
ISBN 978-1-61746-101-9<br />
Order #2101/$210.00<br />
NEW CUMULATIVE SUPPLEMENT!<br />
TORTIOUS INTERFERENCE<br />
IN THE EMPLOYMENT<br />
CONTEXT: A <strong>STATE</strong>-<strong>BY</strong>-<br />
<strong>STATE</strong> <strong>SURVEY</strong>,<br />
THIRD EDITION, WITH 2012<br />
CUMULATIVE SUPPLEMENT<br />
By Brian M. Malsberger<br />
Board of Review Associate Editors:<br />
Stacey A. Campbell, Arnold H. Pedowitz, and David J. Carr<br />
Committee on Employment Rights and Responsibilities<br />
ABA Section of Labor and Employment Law<br />
GET COMPREHENSIVE, UP-TO-DATE<br />
COVERAGE of critical tortious interference<br />
issues in the competitive-employment context<br />
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::<br />
Tortious Interference in the Employment Context: A State-by-State Survey, Third<br />
Edition examines business-versus-business suits, as well as suits brought by former<br />
employees against employers. The treatise provides comprehensive coverage of the issues<br />
that arise regarding competition in the employment context on a state-by-state basis in an<br />
easy to use, question-and-answer format.<br />
Two main types of actions analyzed in Tortious Interference in the Employment Context<br />
are: where there is a contract, tortious interference with that contract; and where there<br />
is no contract or the contract is unenforceable, tortious interference with commercial<br />
relationships or with prospective economic advantage/expectancies.<br />
Using a uniform outline, the treatise examines—for each state—the elements of these<br />
two causes of action, the defenses that may be successfully raised, and the types of<br />
relief available.<br />
The 2012 Cumulative Supplement contains expanded discussion of:<br />
> > Conduct found to constitute tortious interference<br />
> > Defenses<br />
> > Relief available for tortious interference<br />
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > ><br />
Summary of Contents<br />
Each State Chapter Addresses:<br />
Elements of a Former Employer’s Claim Regarding Recruiting or Hiring an Employee with<br />
a Restrictive Covenant:<br />
• Interference with the Covenant<br />
• Interference with Commercial Relationships or Prospective Economic Advantage/<br />
Expectancies<br />
Claims for Interference Involving the Restrictive Covenant Itself:<br />
• Claims Against the New Employer Where the Employment Was At Will<br />
• Claims Where the Employment Was for a Definite Term<br />
• Defenses to Claim<br />
• Relief Available to Former Employer<br />
• Similar Claims Recognized by States<br />
Common Issues:<br />
• Hiring Measures by a New Employer for Screening Applicants with Restrictive<br />
Covenants<br />
• Practical Advice to a Company Considering Hiring Such an Applicant<br />
• Indemnification<br />
• Personal Liability of Individual Officers or Employees of Former Employer for Interference<br />
Law Review Articles/Other Publications<br />
Visit www.bna.com/bnabooks/tic for more detailed information.
2009/554 pp. Hardcover<br />
with 2012 Cumulative<br />
Supplement<br />
Order #9048P/$465.00<br />
2012 Cumulative<br />
Supplement alone:<br />
ISBN 978-1-61746-048-7<br />
Order #2048/$215.00<br />
NEW CUMULATIVE SUPPLEMENT!<br />
DRAFTING AND<br />
ENFORCING COVENANTS<br />
NOT TO COMPETE,<br />
WITH 2012 CUMULATIVE<br />
SUPPLEMENT<br />
By M. Scott McDonald and Jacqueline Johnson Lichty<br />
Littler Mendelson P.C.<br />
A STEP-<strong>BY</strong>-STEP GUIDE for the effective use<br />
of restrictive covenants to guard against unfair<br />
competition and intellectual property loss<br />
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::<br />
Drafting and Enforcing Covenants Not to Compete, with 2012<br />
Cumulative Supplement provides detailed guidance on confidentiality and nondisclosure<br />
agreements, invention and copyright assignments, computer use limitations, garden leave,<br />
forfeitures and clawbacks, nonsolicitation covenants, trade secret enforcement, and many<br />
other options in addition to in-depth coverage of covenants not to compete.<br />
The treatise presents users with a wide variety of contractual options and enforcement<br />
strategies with a highly practical approach that begins by focusing on the drafting<br />
process and on particular substantive choices, language options, and supporting<br />
authority for alternative approaches, and then moves on to the enforcement stage<br />
by providing a useful checklist of enforcement issues to consider from both the<br />
prosecution and defense perspectives.<br />
The 2012 Cumulative Supplement includes a new chapter on State Specific Drafting &<br />
Enforcement Concerns that helps identify states with truly unusual requirements regarding<br />
restrictive covenants, and how to address those requirements; analysis of how the<br />
National Labor Relations Board’s evolving position on employer-imposed confidentiality<br />
and social media restrictions requires changes to many commonly used confidentiality and<br />
nondisclosure agreements as well as other covenants; and suggestions on how to adjust<br />
contract provisions and enforcement efforts in light of new state law developments in New<br />
Hampshire, Georgia, and elsewhere.<br />
Visit www.bna.com/bnabooks/dec for more detailed information.<br />
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > ><br />
2011/1,318 pp. Hardcover<br />
ISBN 978-1-57018-927-2<br />
Order #1927/$355.00<br />
EMPLOYMENT AT WILL:<br />
A <strong>STATE</strong>-<strong>BY</strong>-<strong>STATE</strong> <strong>SURVEY</strong><br />
Melinda J. Caterine, Editor-in-Chief<br />
Employment Rights and Responsibilities Committee<br />
ABA Section of Labor and Employment Law<br />
GET DETAILED ANALYSIS of state law causes<br />
of action for wrongful termination<br />
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::<br />
This addition to the State-by-State Survey Series provides a<br />
detailed analysis of state law causes of action for wrongful<br />
termination, prepared by experts in each jurisdiction under<br />
the auspices of the Employment at Will Subcommittee of the<br />
Employment Rights and Responsibilities Committee of the ABA<br />
Section of Labor and Employment Law.<br />
A reformulation of the prior title Employment Termination: Rights and Remedies, this<br />
treatise provides a comprehensive analysis of the many exceptions to employment at<br />
will recognized by the courts, including both contract and tort theories as well as related<br />
statutes and a discussion of burdens of proof, just cause, disclaimers, and damages.<br />
Like the other surveys, this treatise utilizes the same set of topics for each state to<br />
facilitate a comparative view across states as well as to allow for research on an<br />
individual state. The Finding List by Question by State facilities such research.<br />
Visit www.bna.com/bnabooks/emp3 for more detailed information.
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ABOUT THE AUTHOR AND EDITORS of the State-by-State<br />
Survey Series<br />
Brian M. Malsberger, a Bloomberg BNA Senior Editor, Arlington, VA, is the author<br />
of Covenants Not to Compete: A State-by-State Survey, Eighth Edition; Employee<br />
Duty of Loyalty: A State-by-State Survey, Fourth Edition; Tortious Interference in the<br />
Employment Context: A State-by-State Survey, Third Edition; and Trade Secrets: A<br />
State-by-State Survey, Fourth Edition.<br />
Stacey A. Campbell is a shareholder at Littler Mendelson P.C. in Denver, CO.<br />
David J. Carr is a partner in the Labor and Employment Law section of Ice Miller LLP,<br />
Indianapolis, IN.<br />
Melinda J. Caterine is a partner at the New England office of Fisher & Phillips LLP, a<br />
national labor and employment firm representing management.<br />
Arnold H. Pedowitz practices plaintiff-side employment law in New York, NY.<br />
Eric Akira Tate is a partner at Morrison & Foerster LLP, San Francisco, CA, and<br />
serves as co-chair of the firm’s Employment and Labor Practice Group.<br />
ABOUT THE AUTHORS of Drafting and Enforcing Covenants<br />
Not to Compete<br />
M. Scott McDonald is office managing shareholder and serves on the board of<br />
directors at Littler Mendelson P.C. in Dallas, TX.<br />
Jacqueline Johnson Lichty is a shareholder at Littler Mendelson P.C. in Dallas, TX.
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