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Intellectual Property: Secrets v. Mobility


The success of Silicon Valley is due in part to employees who have good ideas and an entrepreneurial spirit. However, when key employees leave one company to work for or start a competing company, the former employer is often concerned that the departing employees and the new employer may misappropriate trade secrets. The issue of protecting trade secrets while allowing employee mobility is litigated every day.

In various lawsuits before state and federal trial courts, McManis Faulkner has represented all the players: the former employer, the former employees, and the new employer. Representative clients include Apple Computer, Cadence Design Systems, Guzik Technical Enterprises, Infoseek Corporation, Intel Corporation, Matrix Pharmaceutical, Inc., Network Appliance, Inc., Symantec Corporation, and TecHarmonic, Inc.

In one trade secret misappropriation case, a former employer sued the new employer and two former employees. McManis Faulkner represented the former employees. By suing the former employees individually, the former employer faced challenges throughout the case from not just the lawyers for the new employer, but also from McManis Faulkner on behalf of the former employees. When the CEO of the former employer made defamatory statements about the former employees, the former employees counter-sued for damages. The new employer had also cross-complained against the former employer on other grounds. After several years of litigation, the case settled on terms favorable to the MF clients and their new employer.

In another case, MF represented Intel Corporation in an action for misappropriation of trade secrets against Broadcom Corporation, following Broadcom’s employment of three former Intel engineers in a competitive field.  After Intel obtained injunctive relief against Broadcom, the case settled.

Litigation involving trade secrets and other intellectual property matters requires not only a careful analysis of the underlying technology, but also an appropriate strategy to prosecute or defend such claims. McManis Faulkner excels at both analysis and strategy in intellectual property litigation. We work with experts from all over the country to evaluate intellectual property claims and to explain the technology in terms that the judge and the jury understand. McManis Faulkner also has considerable experience in the collection and preservation of electronic evidence, so that evidence in every form is available.


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