In Thoroughbred Ventures, LLC v. Disman, No. 4:18-CV-00318, 2018 WL 3752852 (E.D. Tex. Aug. 8, 2018), plaintiff Thoroughbred Ventures sued its former manager Disman, alleging that Disman breached his employment agreement, which provided that all client contact and background information belonged to Thoroughbred and constituted “Confidential Information” and a trade secret of Thoroughbred. Continue Reading Employer Not Entitled to an Injunction Prohibiting Former Employee from Using Customer Information Committed to Memory

On Friday, May 19, 2017, Texas Governor Greg Abbott signed House Bill 1995, which make several amendments to the Texas Uniform Trade Secret Act (TUTSA).  House Bill 1995 amends TUTSA to make some of its provisions coextensive with DTSA in order to eliminate confusion and to avoid possible forum shopping between state and federal courts.   The amendment also codifies the holding in In re M-I, L.L.C.  TUTSA, as amended, is now the most modern and comprehensive law on trade secrets in the nation.  Continue Reading Texas Enacts Amendments to the Texas Uniform Trade Secret Act

If you have been following my blog, you know that the Texas Legislature is considering proposed legislation to amend the Texas Uniform Trade Secret Act (TUTSA).  One of the purposes of these amendments is to conform parts of TUTSA to the Defend Trade Secrets Act (DTSA), a new law that creates a federal civil cause of action for misappropriation of trade secrets.  The proposed new definition of “trade secret” under TUTSA is a great example of the effort to merge the two laws.  The new TUTSA definition incorporates several of the illustrative examples of trade secret contained in DTSA.  The new or changed language is italicized: Continue Reading Future Changes to the Definition of “Trade Secret” Under the Texas Uniform Trade Secret Act

On February 16, 2017, Texas State Representative Gary Elkins filed H.B. 1995 to amend the Texas Uniform Trade Secrets Act (TUTSA). The bill is the product of months of study completed by a Working Group consisting of members of the Trade Secrets Committee of the Intellectual Property Section of the State Bar of Texas and the Business Law Section of the State Bar of Texas. As a result of that study, the Working Group (of which I was a member) determined that there were four key concerns with TUTSA that needed to be addressed: Continue Reading Texas Representative Files Bill to Amend Texas Uniform Trade Secrets Act

In May 2016, the federal government enacted the Defend Trade Secrets Act (DTSA), which provides federal civil cause of action for trade secrets misappropriation.  It is similar to the state-based Uniform Trade Secret Act.  One important difference, though, is the DTSA’s notice provision for non-disclosure agreements (NDAs).  With the enactment of DTSA, all NDAs entered into or amended after May 11, 2016 are expected to provide notice of certain trade secret disclosure immunities to employees, contractors, or consultants.  Continue Reading Time to Update Your Employee Non-Disclosure Agreements

The Trade Secrets Committee of the State Bar of Texas formed a Working Group with the Business Law Section to explore possible changes to the Texas Uniform Trade Secrets Act (TUTSA) in light of the federal government’s passage of the Defend Trade Secrets Act (DTSA).  In order to jump start discussions, my colleague Joe Cleveland and I created an amended version of TUTSA that attempted to incorporate DTSA’s changes to trade secret law.  After study, the Working Group determined that most of DTSA’s changes did not warrant incorporation into TUTSA.  Nevertheless, it is interesting to explore what a combined TUTSA and DTSA might look like: TUTSA_with_DTSA_Redlines.

Stay tuned for more information on the Working Group’s recommendations to changes to TUTSA.