Texas Gold and Trade Secrets

Southwest Energy Company recently found itself in the cross hairs of a trade secret dispute.  It seems that a pair of geologists and an engineer created a detailed study of the drilling and fracing opportunities in East Texas.  The team had identified 10 “sweet spots” for development and had begun leasing the targeted acreage so that a plan ready for drilling could be supplied to the highest bidder. 

Apparently, Southwest Energy met with the trio and signed a confidentiality agreement.  After reviewing the information and the proposal, Southwest declined to purchase the drill-ready plan.  However, a year later, Southwest Energy purchased large amounts of acreage in and around the identified “sweet spots.”  The geologists and engineer found this too coincidental and brought an action for theft of trade secrets. 

A Texas court agreed with the trio and awarded a judgment of 40.2 million dollars.  On appeal, the judgment was reduced to 11.4 million for lost profits.  The case is currently pending before the Texas Supreme Court. 

What’s the take away here? Regardless of your industry-protect your confidential information.  It may be a supplier list, a pricing structure, or a manufacturing technique.  Use the tools available to maintain these company secrets.  Whether it is in the form of a confidentiality agreement, restricting physical access within your site, or conducting periodic training sessions to remind employees of the value of certain information, keep ahead of any potential leak.  Once a trade secret has been disclosed, you cannot get it back. 

Protecting proprietary information 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.

Can Kings and Queens Coexist When It Comes To Beer?

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The Anheuser Busch Company is objecting to a Belgium based brewer’s trademark application for “Queen of Beers”.  Busch alleges that the “Queen of Beers” mark would infringe on the Busch “King of Beers” mark used in connection with its Budweiser beer. 

The Belgium based company, She Beverage Co., must file a response to Busch’s allegations with the United States Patent and Trademark Office.  The deadline is the end of September. 

What’s the take away here?  When you have a mark that you want to protect with a federal registration, invest in a thorough trademark search and assessment prior to using the mark.  Once you have an idea of what other marks are already out there, you are in a better position to select your mark, calculate your risk, and invest your time and energy on producing and selling products or services that will likely be protected with a federal registration. 

I expect in this situation, the filing of the mark “Queen of Beers” is a calculated risk.  However, if you don’t invest in a good search before you select your mark, you run the risk of having to change your mark down the road due to someone else’s prior rights.  When that happens, you lose any goodwill associated with the mark to date and are forced to begin anew.

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.

JORDAN WINS SLAM DUNK IN TRADEMARK SUIT

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Michael Jordan was recently awarded almost nine million in damages after a supermarket used his name and likeness without his permission.  Jordan sued Dominick’s Grocery store after it ran an advertisement promoting a $2 off coupon for steak.  The advertisement read “Congratulations Michael Jordan, you are a cut above.”  Jordan’s jersey number 23 was also displayed.

Jordan sued alleging that Dominick’s did not have his consent to use his name or his jersey number in connection with their advertisement and coupon.  He asserted that he did not endorse the use of his name in connection with the promotion.  The court agreed and awarded him 8.9 million dollars.

What’s the take away here?  Protect your brand.  Michael Jordan worked hard to become an uber famous basketball player and personality.  Except for newsworthy items, Michael Jordan has every right to ensure that his name, jersey number and likeness are only used in a manner that he controls.  Regardless of how complimentary a promotion may be, you cannot use another’s name, likeness or their affiliation (in this case, Michael’s jersey number) to promote your business.

Protecting your brand and other 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.