Judge Charles Siragusa
California-based, Delaware firm Coupons.com produces store coupons. From 2003 to 2008, New York-based Document Security Systems (DSS) provided it with “safety paper.” In 2010, Coupons.com purportedly breached a 2005 nondisclosure agreement by using DSS “blackout” technology—preventing copying or scanning of coupon print-outs—that it declined to buy from DSS after receiving samples in 2006. DSS asserted claims for contract breach, misappropriation of trade secrets, unfair competition and unjust enrichment. The court granted Coupons.com’s dismissal of DSS’s unfair competition and unjust enrichment claims, but denied dismissal of DSS’s trade secrets misappropriation claim, which DSS maintained was governed by California law and thus could be brought even though there was also a contract breach claim. Following a choice of law analysis, the court found New York law applicable to the misappropriation claim. However, the court granted DSS’ motion to amend that claim to the extent it sought to assert a trade secret misappropriation claim under New York law. Applying the third rule set out in Neumeier v. Kuehner, the court found New York—the place where DSS’s injury occurred the locus of the alleged tort.