2d edition, looseleaf, updated November 2020, Transmittal Letter to Submitter Enclosing Company Policy, Transmittal Letter to Submitter Enclosing Waiver Agreement, Protecting Information Disclosed to Government Agencies, CHECKLIST: PRACTICAL POINTERS FOR PROTECTING TRADE SECRETS WHEN DEALING WITH GOVERNMENT, Form Protective Agreements and Provisions, Long-Form Restricted Rights Legend (General Use), Long-Form Restricted Rights Legend for Electronic Mail and Facsimile Transmissions, Legends for Technical Data or Computer Software and Software Documentation Provided to Federal Government, Legend Claiming Exemption From Freedom of Information Act, Short-Form Confidentiality Agreement for Interviews With Prospective Employees, Long-Form Confidentiality Agreement for Interviews With Prospective Employees, New Employee’s Acknowledgment of Confidentiality Agreement, Protection of Company’s Confidential Information, Assignment of Employee Inventions and Copyrights, Exhibit A—Prior Knowledge and Inventions, Exhibit B—Company’s Written Notification of Lab C §2870, Bilateral Confidential Disclosure Agreement, Unilateral Confidential Disclosure Agreement, Confidential Disclosure Provisions for Inclusion in Purchase Agreements and Purchase Orders, Confidential Disclosure Provisions for Cover Sheet on Proprietary Information, On-Site Employee Confidentiality Agreement, Simple Confidentiality and Nondisclosure Letter Agreement, Grant Clause for Trade Secret and Patent Hybrid Licenses, Grant Clause for Licensing Trade Secrets Disclosed in Patent Applications, Grant Clause for Trade Secret and Trademark Hybrid Licenses, Grant Clause Including Licensee’s Modifications to Licensed Subject Matter, Royalty Provision Providing Economic Incentive to Practice Trade Secrets in Designated Territory, Allocation of Royalties if Hybrid Trade Secret and Patent License, Disclosure of Technical Information Pursuant to Agreement, Security Agreement Granting Clause Describing Trade Secrets Collateral, Additional Language for Description of Trade Secrets Collateral, CHECKLIST: STEPS FOR SETTING UP SIMPLE SECURED TRANSACTIONS, Client Interview Sheet: Information on Change of Employment, Confidential Notice and Copyright Notice for Software, Employee’s Request for Approval to Release Biological Materials or Unpublished Information, Letter for Release of Biological Materials as Unrestricted Gift, Letter for Release of Biological Materials With Restrictions, Employee’s Request for Approval to Solicit Biological Materials or Unpublished Information, Receipt of Biological Material From Outsiders. degree in 1982 from the University of California, Hastings College of the Law, where he was managing editor of the Hastings Constitutional Law Quarterly. degree in 1986 from the University of California, Berkeley, and her J.D. Today they sent me an e-mail stating they are invoking the right to withhold the financial data related to State Plan Amendment 18-007 under the privilege for trade secrets pursuant to California Government Code section 6254(k) in conjunction with California Evidence Code section 1060. These procedures and the statutes that govern the trade secret exemption are often complex, making it cost-effective for businesses or individuals to hire competent counsel to assist when valuable trade secrets are at stake. He has spoken in the area of Internet piracy and is also a regular contributor to his firm’s law blog, http://www.tradesecretslaw.com. (5) (A) Records that are trade secrets pursuant to Section 6276.44, or Article 11 (commencing with Section 1060) of Chapter 4 of Division 8 of the Evidence Code, including, without limitation, instructions, advice, or training provided by the State Compensation Insurance Fund to its board members, officers, and employees regarding the fund’s special investigation unit, internal audit unit, and informational … Mr. Roberts is a coauthor of chapters 1 and 15. Existing law, the California Public Records Act, requires state and local agencies to make their records available for public inspection, unless an exemption from disclosure applies. exempt from this chapter [the Public Records Act], to any member of the public, this disclosure shall constitute a waiver of the exemptions specified in Sections 6254, 6254.7, or other similar provisions of law.” This section provides a number 2005 California Government Code Sections 6250-6270 Article 1. identified as a trade secret, or otherwise exempt from disclosure by law (Section 39660(e)). 1.  When Is Employee “Hired to Invent”? PERRY J. VISCOUNTY is a partner with the firm of Sheppard, Mullin, Richter & Hampton in Orange County, where he chairs the firm’s Intellectual Property and Technology Practice Group. degree in 1967 from the University of California, Hastings College of the Law. Benefit v Wall-Street.com (2019) 586 US ___, 139 S Ct 881. DONALD J. SULLIVAN is an associate with the firm of Gray Cary Ware & Freidenrich LLP in San Diego, specializing in commercial, intellectual property, and products liability litigation. If a claim of misappropriation is made in bad faith, a motion to terminate an injunction is made or resisted in bad faith, or willful and malicious misappropriation exists, the court may award reasonable attorney's fees and costs to the prevailing party. The California Public Records Act requires a state or local agency, as defined, to make public records available for inspection, unless the record is exempt from disclosure. The California Rules of Professional Conduct have been revised and renumbered, and citations to the Rules in this book have been corrected as appropriate. degree in 1959 from Loyola Law School, Los Angeles. degree (summa cum laude) from Gonzaga University and his J.D. Civ. She is a member of the San Francisco Intellectual Property Law Association, the International Trademark Association, and the State Bar of California Intellectual Property Section. See §16.44. Code §§ 3426 through 3426.11 (2011). Ms. Alexander received her B.A. “Catchall” Exemption 5.23; 4. Trade Secret Exemption 5.22; 3. Benefit v Wall-Street .com (2019) ___ U.S. ___, 139 S Ct 881. federal Freedom of Information Act (FOIA), information that is not a trade secret may be exempt from disclosure provided that the information is commercial or financial, the information is obtained from a person and the infor-mation is privileged or confidential. degree (magna cum laude) in 1982 from Princeton University and her J.D. degree (with honors) in 1979 from the University of California, Davis, School of Law, where he was editor of the University of California, Davis, Law Review. 74-114 access to air quality, water quality and hazardous waste records — protection of trade secrets. See Dunster Live, LLC v Lonestar Logos Mgmt. degree in 1972 from the University of Nebraska, his M.S.M.E. in 1997 from the University of California, Berkeley, and her J.D. Trade secrets, as defined in Government Code Section 6254.7, are not public records and therefore will not be released to the public. He specializes in patent, trademark, copyright, and trade secret law. Mr. Callahan is a coauthor of chapter 14. & Software LLC (Fed Cir 2018) 887 F3d 1376, cert denied (2019) ___ US ___, 139 S Ct 813. On the other hand, the information used to calculate air pollution emissions may be withheld from the public if the information is a trade secret. (c) If willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subdivision (a) or (b). Verisign, Inc. v XYZ.COM LLC (4th Cir 2018) 891 F3d 481. The California Public Records Act (Statutes of 1968, Chapter 1473; currently codified as Chapter 3.5 of Division 7 of Title 1 of the California Government Code) was a law passed by the California State Legislature and signed by then-governor Ronald Reagan in 1968 requiring inspection or disclosure of governmental records to the public upon request, unless exempted by law. (1) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or. Ms. Ditora received her B.A. § 3426.5. Existing law provides that nothing in the act requires the disclosure of corporate proprietary information including trade secrets… degree (magna cum laude) in 1987 from the University of New Mexico and his J.D. However, the California Public Records Act provides that air pollution emission data are always public records, even if the data comes within the definition of trade secrets. (a) A complainant may recover damages for the actual loss caused by misappropriation. (b) This title does not affect (1) contractual remedies, whether or not based upon misappropriation of a trade secret, (2) other civil remedies that are not based upon misappropriation of a trade secret, or (3) criminal remedies, whether or not based upon misappropriation of a trade secret. degree in 1984 from the University of Southern California and his J.D. “Catchall” Exemption 5.23; 4. Trade Secret Exemption 5.22; 3. EDWARD SUSOLIK is a supervising trial attorney with the firm of Callahan & Blaine, Santa Ana, where he specializes in multiple areas of complex business litigation, insurance bad faith and coverage, and catastrophic personal injury, from both the plaintiff and defense perspectives. degree in 1962 from the University of Rochester, his LL.B. This title shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this title among states enacting it. Brooklyn, NY 11201 USA degree in 1988 from Stanford Law School. § 552 (b) (4). Mr. Milligan received his B.A. He is the past chair of the State Bar’s Intellectual Property Law Section and writes numerous articles for that section’s quarterly publication. LOWELL ANDERSON is a principal with the firm of Stetina Brunda Garred & Brucker, PC, in Aliso Viejo. 74-113 access to records about a person by a person. DANIEL J. CALLAHAN is the managing principal of the firm of Callahan & Blaine, Santa Ana, specializing in complex business litigation, insurance coverage, insurance bad faith, unfair competition, banking, real estate, and commercial and construction law. Mr. Runk is a member of the American Bar Association, Los Angeles IP American Inn of Court, and the Los Angeles IP Law Association. (C) Before a material change of his or her position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake. BRUCE B. BRUNDA is a principal with the firm of Stetina Brunda Garred & Brucker, PC, in Aliso Viejo. "Brooklaw," the BLS Seal, and Logo are service marks California Public Records Act (Gov. Mr. Runk is a coauthor of chapter 2. See §16.63. This section does not in any manner limit, restrict, impair, or otherwise modify either the application of the other subdivisions of Section 47 to the conduct to which this section applies or the court's authority to control, order, or permit access to evidence in any case before it. Mr. Creighton is a coauthor of chapter 6 and also assisted in the preparation of chapter 4. v Argus Leader Media (2019) 588 US ___, 139 S Ct 2356. LYNNE M. BRENNAN is a member of the firm of Campbell & Flores LLP in San Diego. PETER C. PANG is the founder and principal attorney of IPO Pang P.C., Guangzhou, PRC, and Oakland, specializing in corporate intellectual property law issues and international joint ventures. Mr. Brezner received his B.S. Interrelation with Trade Secrets Act. He also authors a patent blog at http://www.ocpatentlawyer.com. See his biography in About the Authors. Mr. Susolik is a coauthor of chapter 14. See her biography in About the Authors. degree (with honors) in 1993 from the University of Florida. For example, under Exemption 4 in the federal Freedom of Information Act (FOIA), information that is not a trade secret may be exempt from disclosure provided that the information is commercial or financial, the information is obtained from a person and the information is privileged or confidential. ROBERT B. MILLIGAN is an update coauthor of chapters 4A, 11, and 12. Mr. Pang received his B.A. Mr. Allcock received his B.A. degree in 1981 from the University of Michigan. 6251. degree from the University of California, Hastings College of the Law. "#$!%&&' ! See §8.33. The California legislature amended Pen C §502, which makes it illegal to gain access to or use a computer system without authorization, to clarify that “computer system” includes devices or systems located in or connected to motor vehicles. He is a coauthor of chapters 7 and 8. 3.  Causal Nexus Between Advertising Injury and Advertising Activity, III.  COVERAGE STRATEGY FOR TRADE SECRET CASES, 2.  Allegations of Other Covered Claims, 4.  Bad Faith Denial of Insurance Coverage, C.  Counsel’s Professional Responsibilities, II.  COSTS INCURRED IN ACQUIRING TRADE SECRETS AND RIGHTS TO TRADE SECRETS, A.  Purchaser’s Tax Treatment of Cost of Purchased Trade Secrets: Amortization Under IRC §197, 4.  Exceptions to Application of §197 for Related Party and Churning Transactions, 5.  Subsequent Transfers of §197 Property, B.  Licensee’s Tax Treatment of Licensed Trade Secrets, 1.  Treatment of Consideration Paid for License, 3.  Method of Depreciation Under IRC §167, III.  OWNER’S TAX TREATMENT OF SELF-DEVELOPED TRADE SECRETS, A.  Deduction, Capitalization of, or Credit for Development Costs, 3.  Interplay Between §174(a) and §174(b) Elections, 8.  Research and Experimental Expenditures and Alternative Minimum Tax, C.  Amortization of Development Costs Under IRC §167, 2.  Determining Ascertainable Useful Life, 3.  Goodwill and Related Mass Assets Not Depreciable, A.  Manner of Trade Secret Exploitation, B.  Sale or License: Capital Gains Treatment on Recognized Gain, 2.  Capital Asset or IRC §1231 Asset [Deleted], 3.  “Sale or Exchange” Requirement: The “All Substantial Rights” Test, 5.  Limitation on Capital Gain Treatment; Installment Sale Reporting; Imputed Interest, 6.  Limitation on Losses on Transfer of Acquired Trade Secrets Subject to IRC §197, C.  Taxation of License Payments Received by Licensor, V.  OTHER DISPOSITIONS OF TRADE SECRETS, E.  Transfer on Liquidation or Sale of Business, VII.  TAX CONSEQUENCES OF TRADE SECRET LITIGATION, A.  Form: Confidential Notice and Copyright Notice for Software, 14.  Form: Independent Contractor Status, 25.  Form: Concluding Clause and Signatures, III.  TRADE SECRET PROTECTION FOR MASS-MARKETED SOFTWARE, 7.  Form: Sublicensing, Assignment, and Transfer, C.  Click-Wrap and Browse-Wrap Licenses, D.  Additional Strategies for Maintaining Trade Secrets in Mass-Marketed Software, E.  Internet Publication of Trade Secrets, IV.  PROTECTION UNDER FEDERAL COPYRIGHT LAW, C.  Rights Against Infringers Under Copyright Law, D.  Copyright Registration for Trade Secret Software, V.  LIMITATIONS ON SCOPE OF COPYRIGHT PROTECTION, A.  Statutory Limitations on Copyright Protection, D.  Limitations on Protection of Object Code, VII.  CONSULTANT’S COPYRIGHT ASSIGNMENT, VIII.  PROTECTION UNDER DIGITAL MILLENNIUM COPYRIGHT ACT, IX.  PROTECTION UNDER THE COMPUTER FRAUD AND ABUSE ACT, X.  PATENT PROTECTION FOR COMPUTER TECHNOLOGY, A.  Advantages and Disadvantages of Patent Protection, C.  Strategies for Mitigating Effect of 35 USC §112 Disclosure Requirements, C.  Invention Must Have Some Practical Application, E.  Claims Directed to Computer Processes, II.  PROTECTING PROPRIETARY RIGHTS IN BIOLOGICAL MATERIALS, C.  Academic Practices and Problems With Proprietary Rights, 2.  Genentech, Inc. v Eli Lilly & Co. [Deleted], D.  Ascertaining Proprietary Rights in Human-Derived Biomaterial, E.  Government Regulations on Biotechnology Research, F.  Employee Knowledge Versus Proprietary Information, G.  Potential Conflicts of Interest Within Single Law Firm, III.  PATENT AND TRADE SECRET PROTECTION, A.  U.S. Patent Protection for Biotechnology Products, B.  Microorganism Deposits Associated With Patent Filings, 1.  Disadvantages of Patents Flowing From Foreign Laws on Deposits, C.  Choosing Patent or Trade Secret Protection, 1.  Advantages and Disadvantages of Patent Protection; Paris Convention, 2.  Advantages and Disadvantages of Trade Secret Protection, IV.  DISSEMINATION AND RECEIPT OF BIOLOGICAL MATERIALS, B.  Requests From Outsiders for Company Materials, C.  Accepting Biological Materials and Compounds From Outsiders, V.  PROTECTING AGAINST THEFT OF BIOLOGICAL MATERIALS, A.  Tagging Microorganisms to Protect Biotechnology Trade Secrets, B.  Using Other Precautions Reasonable Under Circumstances, C.  Using Safety Precautions to Enhance Security, D.  Dealing With New and Departing Employees, A.  Form: Employee’s Request for Approval to Release Biological Materials or Unpublished Information, B.  Form: Letter for Release of Biological Materials as Unrestricted Gift, C.  Form: Letter for Release of Biological Materials With Restrictions, D.  Form: Agreement on Use of Biological Materials, E.  Form: Employee’s Request for Approval to Solicit Biological Materials or Unpublished Information, F.  Form: Letter Requesting Biological Materials, G.  Form: Receipt of Biological Material From Outsiders.
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