A Trade Secret Lose Lose Lose (LLL)

Yikes!! Another trade secret case that is an a LLL (lose lose lose) for the plaintiff who failed to prove that the TS was even theirs in the first place, or that it was a TS.

Congratulations to the defendant Alloy, who was able to convince a jury that the tech was “known in the industry“ and that they “independently developed” the technology they were using to sell to Boeing.

Why is this an LLL?

1) Their senior leadership was distracted for a full 8 years during this litigation.

2) The legal fees alone must’ve cost north of $20M over this period of time.

3) They lost their one and only client for this product.

4) They lost any future protection they had over these assets as trade secrets

5) The overall value of the company appeared to be tied directly to this asset, which means that leadership, employees, investors & lenders are all left without any recourse. They are likely looking at D&O claims now as well.

The TSARM process we created addresses the risks for either party, establishing the existence and ownership of a TS and provides the ability to prove independent development & proper security exist. The #insurance can literally save a company with only a handful of “Crown Jewels”.

View the full article on Reuters here: https://www.reuters.com/legal/litigation/universal-alloy-wins-alcoa-trade-secret-trial-over-airplane-wing-parts-2023-07-26/