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Trade secrets & startup company

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engineer35

Junior Member
What is the name of your state?

I am starting a consulting business on hard disk drives (not really, but works for an example), based on my experience from a previous job. They have found-out about my interests, and have sent letters accusing me of sharing their trade secrets with other companies (of course while working in that previous job and in their going-away package, I had signed agreements not to use their trade secrets). They also claim that using some of the vendors they use for parts are a trade secret too.

At the time I signed the agreement, the office I was working in was in California, with the company headquarters in New York. The agreement doesn’t specify anything about California law nor any state law, just the name of the company. So, if they want to sue me, can they file in New York and make me defend myself in New York? If so, could I file some kind of reply that challenges their statement that would make the issue in California and make it so I don’t have go out there?

So, let’s say this thing goes to court, and my previous employer says “Well, Gateway didn’t used to make Hard Drives, and Gateway even confirmed that our ex-employee was working with them, and now they have a Hard Drive that looks similar to ours, and they are even using some of our same manufacturers of parts now!” And I show some Hard Drives and say, “There are 10 other companies that make Hard Drives, and there’s nothing in the Gateway Hard Drive that’s different from the other 10 companies. It’s just as similar to the other 10 types as it is to yours, and in fact has about 20 differences from yours. Please take a look at these 5 here… Here’s all the different things and all the common things. The manufacturers aren’t secret because they advertise. Everything in the Gateway Hard Drive is common within the trade, so nothing here is a trade secret.”

Then could a Judge order my computer and email history to be confiscated to investigate the issue more? How likely is that based on the mini-story above?

In your opinion/experience, what would it take for a vendor/parts manufacturer to be considered a trade secret?

Thanks!
 


seniorjudge

Senior Member
engineer35 said:
What is the name of your state?

I am starting a consulting business on hard disk drives (not really, but works for an example), based on my experience from a previous job. They have found-out about my interests, and have sent letters accusing me of sharing their trade secrets with other companies (of course while working in that previous job and in their going-away package, I had signed agreements not to use their trade secrets). They also claim that using some of the vendors they use for parts are a trade secret too.

At the time I signed the agreement, the office I was working in was in California, with the company headquarters in New York. The agreement doesn’t specify anything about California law nor any state law, just the name of the company. So, if they want to sue me, can they file in New York and make me defend myself in New York? If so, could I file some kind of reply that challenges their statement that would make the issue in California and make it so I don’t have go out there?

So, let’s say this thing goes to court, and my previous employer says “Well, Gateway didn’t used to make Hard Drives, and Gateway even confirmed that our ex-employee was working with them, and now they have a Hard Drive that looks similar to ours, and they are even using some of our same manufacturers of parts now!” And I show some Hard Drives and say, “There are 10 other companies that make Hard Drives, and there’s nothing in the Gateway Hard Drive that’s different from the other 10 companies. It’s just as similar to the other 10 types as it is to yours, and in fact has about 20 differences from yours. Please take a look at these 5 here… Here’s all the different things and all the common things. The manufacturers aren’t secret because they advertise. Everything in the Gateway Hard Drive is common within the trade, so nothing here is a trade secret.”

Then could a Judge order my computer and email history to be confiscated to investigate the issue more? How likely is that based on the mini-story above?

In your opinion/experience, what would it take for a vendor/parts manufacturer to be considered a trade secret?

Thanks!


Q: So, if they want to sue me, can they file in New York and make me defend myself in New York?

A: Yes.



Q: If so, could I file some kind of reply that challenges their statement that would make the issue in California and make it so I don’t have go out there?

A: Yes.
 

engineer35

Junior Member
Terminology & more advice

Thanks for the reply Judge. What is the legal term for how I would challenge their statement? Is it a Cease and Decist or Request for Judgement, or?

What advice is there on what makes a vendor a trade secret?
Given that scenario, how weak is my ex-employers case?
 

divgradcurl

Senior Member
Thanks for the reply Judge. What is the legal term for how I would challenge their statement? Is it a Cease and Decist or Request for Judgement, or?

You would file a motion to dismiss for lack of personal jurisdiction.

What advice is there on what makes a vendor a trade secret?

Google the "uniform trade secrets act" -- virutally all state laws are very similar to this.

Given that scenario, how weak is my ex-employers case?

It's really impossible to tell without having access to all of the actual facts.
 

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