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Represented a Manufacturer in One of the First Cases Filed in the United States Under the Federal Defend Trade Secrets Act

February 17, 2017

Represented a manufacturer in one of the first cases filed in the United States under the Federal Defend Trade Secrets Act (“DTSA”) to obtain injunctive relief in the U.S. District Court, N.D. of Illinois, against the company’s Chief Science Officer and a new start-up competitor he joined. The firm’s client specialized in fitness equipment. As the TRO papers disclosed, for over a year (while drawing a salary from the company), the inventor worked with his employer’s primary distributor to secretively develop a competitive technology, feeding all of the trade secrets to the new competitor to develop the second generation of the client’s technology. By bringing the case under the new DTSA, the firm obtained a TRO maintaining jurisdiction in Federal Court under the DTSA. The TRO included broad injunctive relief putting a halt to sales of the competitive product, escrowing any ill-gotten profits, and resulting in a favorable settlement following Court-ordered mediation.
Kaufman & Company, LLC