Thursday, May 5, 2011

Traverse Internet Law Federal Court Report: May 2011 - Trade Secret Violation Lawsuits


The facts are unproven allegations of the Plaintiff and all commentary is based upon the allegations, the truthfulness and accuracy of which are likely in dispute.


NORD-LOCK, INC. and NORD-LOCK INTERNATIONAL AB v. HEICO FASTENERS, INC., ET AL.
NORTHERN DISTRICT OF ILLINOIS (CHICAGO)
1:11-CV-02725
FILED: 4/25/2011

Customer lists are always going to be considered trade secrets if properly protected. There are contracts that must be reviewed when hiring an employee of a competitor and a “hiring letter” that includes promises from the new employee not to disclose any trade secrets is essential. Sometimes the contract the employees had with their previous employer is confidential in nature, which creates a high risk situation. Hiring employees of competitors is a risky proposition and these types of lawsuits often follow, even when the claims of trade secret misappropriation are merely speculation by the former employer.

Nord-Lock is in the business of selling bolt securing systems. The individual Defendants, Gordon and Raab, are allegedly former employees of the Plaintiff that were hired by the Defendant. Plaintiff alleges that these individuals were hired specifically to provide customer contact and identification information to the Defendant.

The Defendants are accused of trademark infringement, common law trademark infringement, false designation of origin, unfair competition, false endorsement, counterfeiting, trademark dilution, violation of Illinois Deceptive Trade Practices Act, common law unfair competition, violation of Illinois Trade Secret Act, tortious interference with economic advantage, and breach of common law duty of loyalty. The prayer for relief requests preliminary and permanent injunctive relief, actual damages, exemplary damages, punitive damages, an accounting and disgorgement of profits, costs, and attorneys’ fee. Traverse Internet Law Cross-Reference Number 1491.