X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
()

Long gone are the days of a departing employee sneaking surreptitiously into the office after hours to steal his or her employer’s valuable information just before starting a new job at a competitor. Today, stealing the information is often as simple as forwarding a few emails to a personal email account or downloading internal documents to a flash drive. In a matter of seconds, the company’s most sensitive information leaves the security of its network and enters the world of unknowns—or even worse, the World Wide Web.

Many trade secret litigations begin the same way—with the former employer racing to the courthouse for an injunction to stop the employee from beginning work at the competitor. For a quarter century, New Jersey litigators relied on the seminal case of National Starch and Chemical Corp. v. Parker Chemical Corp. to persuade judges to issue injunctions to stop the former employee from letting the cat out of the bag. The so-called “inevitable disclosure” doctrine allowed a judge to issue restraints precluding (or limiting) the employee’s job at a competitor, even when the former employer lacked smoking-gun evidence of theft. So long as the companies were competitors, the departing employee had access to the secrets, and the new job and old job were so similar that there existed a “sufficient likelihood of inevitable disclosure,” then restraints could be entered against the departing employee.

On Jan. 5, 2012, the New Jersey Trade Secrets Act (NJTSA) took effect. The NJTSA, by its very terms, superseded the existing common law for misappropriation of trade secrets. Over four years later, however, it remains an open question whether the “inevitable disclosure” doctrine survived, and if so, in what function.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.