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Panel Session I: The best kept (trade)
secret: a real life scenario
Sunday, October 15 201709:00-12:30
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meetthe panel
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• Annsley Ward, Bristows LLP, UK (Moderator)
• Mark Ridgway, Allen & Overy, UK (Moderator)
• Lucas Kenny, NetApp, Melbourne, Australia
• Linda Lecomte, Wuersch & Gering, New York, USA
• Catherine Mateu, Armengaud Guerlain, Paris, France
• Justice David Yates, Federal Court of Australia
• Presiding Judge Dr. Matthias Zigann, Regional Court Munich I
• James Pooley, Pooley PLC, California, USA• Judge James Kleinberg (Ret), California, USA • Mr Justice Richard Arnold, High Court of England & Wales• Mr Justice Henry Carr, High Court of England & Wales• Pamela Passman, CREATe.org, Washington DC, USA
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global importanceoftrade secrets
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56% v 37%
Waymo v UberPfizer v Amman
Apotex v Teva
patenttrade
secrets
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Jim Pooley
California
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panel discussion
importance
of trade secrets
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How are trade secrets protected?
Automatic (eg
equity, unfair
competition)
Specific
criminal
provisions
Contractual
Other criminal
provisions
Mode of protection affects:
(i) Approach / strategy;
(ii) Flexibility of remedies;
(iii) Degree of control.
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Trade Secrets “definitions”
Protection for information that is:
“…secret in the sense that it is not, as a body or in the precise configuration
and assembly of its components, generally known among or readily
accessible to persons within the circles that normally deal with the kind of
information in question…” (TRIPS Article 39)
– Otherwise no efforts (prior to EUTSD) to harmonise what can be
protected
– NDAs typically attempt to define the information that is to be protected
(eg information relating to a particular product / business / transaction)
– But generally hard to know in advance what really matters, making it
challenging to plan ahead
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When trade secrets issues arise
Information leakage & loss of competitive edge
Disclosure
through
data leak /
attacks
Disputes with
former
collaborators
(eg post-JV)
Misuse by
employees
(incoming and
outgoing)
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Litigation challenges
Need to move
quickly
Public policy
considerations /
defences
Specifying the alleged
trade secrets up front
Protecting
confidentiality
in Court
Sceptical
judges?
Proving that the
secrets have been
misused (ie evidence)
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Remedies to shoot for!
www.aippi.org
‒ Pre-action disclosure
‒ Search / seizure
‒ IT forensics
‒ Private investigators?
‒ Disclosure
‒ Depositions
‒ Testimony
‒ Final injunction
‒ “Spring board” injunction
‒ Damages
Pre-action / evidence
gathering
Interim phase Final remedies
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Legislative advances…
The EU Trade Secrets Directive
– To be implemented by 9 June 2019
– Minimum harmonisation within EU
– Provides for:
– Uniform “definition” of TSs
– Criteria for unlawful
acquisition, use and disclosure
– Confidentiality of court
proceedings
– Safeguards to protect free
speech, worker mobility and
prevent abusive litigation
– Provisions on “infringing
products”
The Defend Trade Secrets Act
– In force since May 2016
– Federal statute to supplement
Uniform Trade Secrets Act
implementations in State Law
– Provides for:
– Federal civil cause of action
– Ex parte search & seizure
orders
– Easier means of enforcing
trade secrets across state lines
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panel discussion
key
issues
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Emilia
ZenTech
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POLICIES
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• Express confidentiality agreements
with employees and third parties
supply chain, specifically identifying
categories of information
• Tailored & enforceable non-compete
(rival business) and non-solicitation
clauses (group moves)
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Physical• Building access controls – ID
swipe access
• Clean rooms – no electronic
devices
• Biometric access
• Motion detection
• Weight scanners
• ID security checks
• Security guard monitoring
• Metal detectors/pat downs
• No one person with access
to all highly confidential
areas
• Secure disposal of
equipment
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• Electronic monitoring
using AI to flag suspicious
behaviour
• Dedicated VPN networks
• Printing logs
• Biometric access
• Data encryption
• Remote access restrictions
• USB drive restriction
• Breach detection measures
• Monitor and gauge access
patterns/frequency per
role
• Tracking
• Password protection
Digital
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paneldiscussion
best practices
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Meet Emilia
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ZenTech’s Bad Morning
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Emilia’s suspicious behaviour
Last 3 months
File access up over 300% (c.f. average over 12 months)Personal webmail use up from 2.5 weekly to 6 visits per day
Had been reported as a yellow/amber risk (for past 6 weeks)
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Last night, 11PM
Remotely accessed ZenTech’ssystems for 1.5 hours (never previously logged on after 8PM)
Accessed around 30 files and deleted around 50, then deleted her deleted items
Now reported as amber/red risk
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Emilia
1st
vote
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Hon.Jim
Kleinberg
California
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west
east
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time for coffee