The New Federal Defense of Trade Secrets Act-Employers Take Note

Earlier this year, I wrote about the federal Defense of Trade Secrets Act passed by the senate.  This month, President Obama signed the act into law.  The law (“DTSA”) creates a federal cause of action for theft of trade secrets.  This means that the owner of a trade secret that has been stolen or disclosed can sue in federal court. 

There is a whistleblower provision that grants immunity from a theft of trade secret claim to anyone who makes a disclosure in confidence to either (1) a federal, state, or local government official, or (2) an attorney, as long as the reason for disclosure is for the sole purpose of reporting or investigating a violation of the law. 

The whistleblower provision requires employers to provide notice to all employees.  Failure to do so will void an employer’s ability to take advantage of the DTSA’s provisions regarding exemplary damage awards (up to twice the damage award) and attorneys’ fees in cases of willful violations.

What’s the take away here?  It is in every employer’s best interest to include the new notification in any employee agreement relating to trade secrets, confidentiality and/or nondisclosure obligations.  This would include

·      Non-compete agreements

·      Consulting agreements

·      Employment agreements

·      Separation agreements

·      Retention agreements, and

·      Independent contractor agreements.

It would be wise to also include a notice in any employee handbook or new employee orientation materials.

Protecting your innovative developments is critical to any organization.  Having the right person to help you make those decisions is important.  The Law Office of Kathleen Lynch PLLC is designed to help businesses such as yours keep ahead of the game.   The first telephone consultation is free.  Email us at klynch@kliplaw.com.

Patent Purchase Program to Begin Soon

Want to sell your patent?  Several multinational firms including IBM, Facebook, and Ford are participating in a program called the Industry Patent Purchase Program (IP3).  It is being run by a non-profit organization called Allied Security Trust. 

It is essentially a take it or leave it proposition where the patent owner offers for sale their patent and any of the participating companies have the option of purchasing it.  The participating companies are primarily focused in the technology and automotive sectors.  The areas innovation in which they are most interested include:  

• computers and software;
• consumer electronics;
• communications;
• semiconductor & components;
• healthcare & medical;
• automotive;
• lighting; and
• financial services.

The range of value of any one patent is not certain.  However, Google ran a similar program last year and spent between $3,000 and 250,000 on patents with the average price being about $48,000.

The window of opportunity for submitting an offer is between May 25, 2016 through June 8, 2016.  The submission form and further details can be found here. 

So for any patent owner out there who has had difficulty trying to get the attention of the corporate world, now is your chance.

Capitalizing on innovative developments is critical to any organization.  Having the right person to help you make those decisions is important.  The Law Office of Kathleen Lynch PLLC is designed to help businesses such as yours keep ahead of the game.   The first telephone consultation is free.  Email us at klynch@kliplaw.com.

MIT Develops Second Skin

Hold off on scheduling that facelift.  Researchers at MIT (Massachusetts Institute of Technology) have developed a compound that acts like a second, more youthful skin.  The composition is known as XPL (cross-linked polymer layer).  It is applied to the skin in two steps.  First, a layer of transparent cream is applied to the skin.  Then a catalyst is applied. The catalyst binds the cream to the skin as a transparent film. 

While XPL has obvious applications as a wrinkle cream, it may also be used as an SPF and to treat certain skin conditions such as dermatitis or psoriasis.   The video demonstrating the cream’s performance can be viewed here.

Protecting your innovative developments is critical to any organization.  Having the right person to help you make that decision is important.  The Law Office of Kathleen Lynch PLLC is designed to help businesses such as yours keep ahead of the game.   The first telephone consultation is free.  Email us at klynch@kliplaw.com.