Trade secret theft and the legal liability for it has existed since the rise of modern business and industry. For many years, trade secret cases were usually brought as a result of employees leaving one company for another, with the focus of the cases emphasizing the right of the employer to keep its information versus the right of the employee to freely practice elsewhere. In recent years, however, the nature of trade secret cases has shifted. Employee theft cases still exist, but more and more, companies are faced with theft that involves foreign individuals, companies, and even governments. According to the National Office of the Counterintelligence Executive, theft by foreign entities is significant and growing.
Last year a trade secret suit brought by E.I. du Pont de Nemours and Company against Kolon Industies Inc., a South Korean textile company, was heard in an eight-week jury trial in the Eastern District of Virginia. DuPont claimed that Kolon had stolen key technology related to its Kevlar product. (The author of this article was co lead trial counsel for DuPont.) The jury found for DuPont, returning the largest verdict ever in a contested trade secret case and the largest verdict for any case in the state of Virginia $920 million in damages. Kolon has said that it will appeal.
