Creative Protection

Judge not convinced by Apple's trade secrets argument, unseals docs

By Jacqui Cheng

A judge has denied Apple's request to keep certain court documents sealed in its copyright infringement case against Mac clone maker Psystar. In a late Tuesday filing, US District Judge William Alsup ordered that portions of the parties' summary judgement be unsealed and filed publicly without any redaction. The ruling came after another judge's comments in September, who argued that Apple had failed to articulate specific reasons for the documents to remain sealed.

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Coca Cola's Secret Recipe Allegedly Revealed by Radio Program

Published February 15, 2011 | NewsCore

CHICAGO – A US radio station claims to have discovered the holy grail of soft drinks -- the secret recipe for Coca-Cola, news.com.au reported Tuesday.

The website for Chicago public radio show This American Life states it found a list of ingredients for Coca-Cola, a secret that has been closely guarded for more than a century, in a 40-year-old newspaper.

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In re Mighty Leaf Tea

Mighty Leaf Tea appeals the decision of the Trademark Trial and Appeal Board affirming the refusal to register the mark ML, in standard character form, for use with certain personal care and skin care products. In re Mighty Leaf Tea, No. 76678969 (TTAB May 8, 2009). We affirm the Board’s decision.

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JustMed, Inc. v. Byce

At the heart of this case is a dispute over whether a small technology start-up company owns the source code developed for its product. Its informal employment practices raise questions as to whether defendant-appellant Michael Byce was an employee when he developed the source code. After a bench trial, the district court entered judgment and ordered a permanent injunction against Byce, in favor of plaintiff appellee JustMed, Inc., Byce’s former employer. Among other things, the district court found that JustMed owns the software program used on its digital audio larynx device under the work-for-hire doctrine of the Federal Copyright Act, because Byce wrote the source code for the company as an employee, not as an independent contractor. The district court also found that Byce misappropriated the software under the Idaho Trade Secrets Act. Byce appeals both rulings. We have jurisdiction under 28 U.S.C. § 1291, and we affirm in part and reverse in part.

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Southwest Stainless, LP v. Sappington

This diversity case requires us to address the contours of covenants not to compete under Oklahoma law. When John R. Sappington and William B. Emmer defected from one Tulsa-area metals business, Southwest Stainless, to another, Rolled Alloys, they took with them years of expertise in the metals industry and personal relationships with many area customers. Some years before, Southwest Stainless had been involved in a merger, and Sappington and Emmer had signed noncompetition agreements that purported to restrict their ability to work for competitors in the area. When Southwest Stainless lost business to Rolled Alloys following Sappington’s and Emmer’s defections, it sued for breach of these agreements and a number of related claims.

After trial, Southwest Stainless succeeded on a handful of these claims and was granted an injunction ordering Sappington and Emmer to abide by the noncompetition agreements for a year following judgment. Rolled Alloys appeals, arguing that even on these claims, Southwest Stainless failed to connect its alleged loss of business to the defendants’ actions. Exercising jurisdiction under 28 U.S.C. § 1291, we affirm the damages and injunction arising from the noncompetition agreements and reverse damages for misappropriation of trade secrets.

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PFS Distribution Co. v. Raduechel

PFS Distribution Company (PFS Distribution) and Pilgrim’s Pride Corporation (Pilgrim’s Pride) (collectively, PFS) sued Darrell Raduechel (Raduechel) and Barry Spain (Spain) for breach of fiduciary duties and copyright infringement in connection with the formation and operation of Raduechel’s and Spain’s company, D&B Solutions, Inc. (D&B Solutions). PFS also sued Raduechel; Spain; D&B Solutions; John Pothoven (Pothoven); Richard Donohue (Donohue) and Theobald Donohue & Thompson, P.C. (TD&T) (collectively, Accounting Defendants); and Steven Hicks (Hicks) and MidWestOne Bank and Trust (MidWestOne) (collectively, Banking Defendants) for civil conspiracy, constructive trust and unjust enrichment, misappropriation of trade secrets, and aiding and abetting. D&B Solutions was also added to PFS’s copyright infringement claim. Raduechel counterclaimed against PFS for payment of a salary bonus.

The district court1 dismissed Raduechel’s counterclaim, and granted summary judgment to PFS on the issue of Raduechel’s and Spain’s liability for breach of fiduciary duties and misappropriation of trade secrets. The district court left for trial the remaining claims, as well as the issues of causation and damages for Raduechel’s and Spain’s breach of fiduciary duties and misappropriation of trade secrets. A jury returned a verdict in favor of all defendants on all of PFS’s remaining claims. PFS then moved for equitable relief and a new trial. The district court denied both motions.

PFS now challenges the district court’s (1) denial of PFS’s motion for a new trial; (2) jury instructions on the civil conspiracy, and aiding and abetting claims; (3) expert witness rulings; and (4) denial of equitable relief. Raduechel cross appeals the district court’s dismissal of his counterclaim, and Raduechel and Spain challenge the district court’s summary judgment ruling. We affirm.

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ASSET MARKETING V. GAGNON

Kevin Gagnon, doing business as Mister Computer (Gagnon), appeals from a grant of summary judgment in favor of Asset Marketing Systems, Inc. (AMS). Gagnon contends that AMS infringed his copyright in six computer programs that he wrote for AMS by continuing to use and modify them without his consent, and that AMS misappropriated trade secrets contained in the programs’ source code. Gagnon also challenges the denial of his ex parte application for an order denying or continuing summary judgment. The district court concluded that Gagnon had granted AMS an unlimited, nonexclusive, implied license to use, modify, and retain the source code of the programs that defeated his copyright infringement and trade secret misappropriation claims. The district court also denied Gagnon’s ex parte application. We have jurisdiction under 28 U.S.C. § 1291, and we affirm the district court.

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General Universal Sys. Inc. v. HAL Inc.

General Universal Systems, Inc. (“GUS”) originally sued HAL, Inc. (“HAL”), Joseph Herrin, and Ernest Allen Parkin (“HAL Defendants”) for numerous state and federal claims for stealing proprietary software. GUS also sued a number of companies (“Customer Defendants”) to which HAL licensed the software program. We previously ruled on this case in General Universal Systems v. Lee, 379 F.3d 131 (5th Cir. 2004) and determined that a remand to the district court was appropriate to settle the sole remaining claim of trade secret misappropriation under Texas law.

On remand, the magistrate judge granted summary judgment to the HAL Defendants, finding that the statute of limitations had expired prior to the initiation of the lawsuit. Further, the magistrate judge granted summary judgment to the Customer Defendants, finding that the claims against those
parties were not included in the scope of the remand from this court.

We must now determine the accrual date of an alleged trade secret misappropriation and whether the claims against the Customer Defendants were within the scope of our remand.

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Synergetics, Inc. v. Hurst

Synergetics, Inc., a company that designs, manufactures, and sells ophthalmic equipment used in eye surgeries, sued former employees Appellants Charles Richard Hurst, Jr. and Michael McGowan for (1) trade secret misappropriation, (2) breach of contract, (3) intentional interference with business relationships, and (4) breach of fiduciary duty. A jury found for Synergetics and awarded compensatory and punitivedamages. The district court1 entered judgment consistent with the jury’s findings, enjoined Hurst and McGowan from using or disclosing Synergetics’ trade secrets for two years, required Hurst and McGowan to destroy the misappropriated information and products developed from that information, and denied the motion for remittitur and proposed judgment. On appeal, Hurst and McGowan argue that the district court should have granted their (1) motion in limine to exclude the testimony and reports of a Synergetics’ expert witness, (2) motion for summary judgment or motion for judgment as a matter of law, and (3) proposed judgment and motion for remittitur. We affirm.

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