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Tag Archives: Inevitable disclosure

Your Licensee Knows Your Confidential, Proprietary Technology and Just Acquired Your Main Competitor: Can You Sue for Threatened Trade Secret Misappropriation?

Posted in Trade Secrets Protection/Noncompetes

A federal court in Washington State issued a ruling last week in Edifecs, Inc. v. Tibco Software, Inc., further limiting grounds for seeking trade secret relief arising out of the acquisition by a licensee of the licensor’s primary competitor. The United States District Court in Seattle dismissed trade secret claims that were based on the failure by the licensee to prevent employees who had worked extensively with the licensor’s confidential information from working on business of the newly acquired competitor because that failure, alone, was not a sufficient threat to the disclosure of admittedly confidential, proprietary technology.

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