ILNews

Courts must ID trade secrets

Michael W. Hoskins
January 1, 2008
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The 7th Circuit Court of Appeals has overturned a northern Indiana judge's order to protect certain information and trade secrets, holding the District Court judge didn't adequately distinguish what shouldn't be released in a copyright and trade secrets dispute between two competing modular home builders.

A unanimous three-judge panel ruled today in Patriot Homes, Inc. and Patriot Manufacturing, Inc. v. Forest River Housing, Inc., d/b/a Sterling Homes, No. 06-3012.

The case involved Patriot Homes and Forest River Housing, who'd been competing contentiously for years, and what information each manufacturer could use. After Forest River unsuccessfully tried to acquire Patriot in 2004, it hired four Patriot employees. Those workers copied design materials from computers and took them to the new company, Sterling Homes.

In 2005, Sterling distributed brochures containing exact copies of Patriot's floor plans for homes that it was selling for less. Patriot asked Judge Allen Sharp for a preliminary and permanent stop to circulating those materials and that all confidential information and trade secrets be returned. Judge Sharp granted the preliminary injunction, but both parties disagreed on what information could be protected.

Overturning that injunction, Circuit Judge Terry Evans wrote: "The preliminary injunction entered by the District Court uses a collection of verbs to prohibit Sterling from engaging in certain conduct; but ultimately it fails to detail what the conduct is ... the substance of the 'trade secret' or 'confidential information' to which the verbs refer."

The Circuit Court disagreed with Patriot that no requirement exists for a court to identify each and every element of copyright originality or trade secret. As a result of the injunction, neither Sterling nor the Circuit Court could determine using certain information gathered through the Freedom of Information Act could be used, the court wrote.

"While it is not always easy to ascertain what information is a trade secret or confidential at this stage of the proceedings, the District Court still must make this determination in order to clearly delineate Sterling's responsibilities pursuant to the injunction," Judge Evans wrote, noting that Patriot mentioned during arguments in March that Sterling could only know that by looking at the court's preliminary injunction transcripts.

He added, "This requires a lot of guesswork on Sterling's part in order to determine if it is engaging in activities that violate the injunction, since the order itself is a little more than a recitation of the law."
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  1. Im very happy for you, getting ready to go down that dirt road myself, and im praying for the same outcome, because it IS sometimes in the childs best interest to have visitation with grandparents. Thanks for sharing, needed to hear some positive posts for once.

  2. Been there 4 months with 1 paycheck what can i do

  3. our hoa has not communicated any thing that takes place in their "executive meetings" not executive session. They make decisions in these meetings, do not have an agenda, do not notify association memebers and do not keep general meetings minutes. They do not communicate info of any kind to the member, except annual meeting, nobody attends or votes because they think the board is self serving. They keep a deposit fee from club house rental for inspection after someone uses it, there is no inspection I know becausee I rented it, they did not disclose to members that board memebers would be keeping this money, I know it is only 10 dollars but still it is not their money, they hire from within the board for paid positions, no advertising and no request for bids from anyone else, I atteended last annual meeting, went into executive session to elect officers in that session the president brought up the motion to give the secretary a raise of course they all agreed they hired her in, then the minutes stated that a diffeerent board member motioned to give this raise. This board is very clickish and has done things anyway they pleased for over 5 years, what recourse to members have to make changes in the boards conduct

  4. Where may I find an attorney working Pro Bono? Many issues with divorce, my Disability, distribution of IRA's, property, money's and pressured into agreement by my attorney. Leaving me far less than 5% of all after 15 years of marriage. No money to appeal, disabled living on disability income. Attorney's decision brought forward to judge, no evidence ever to finalize divorce. Just 2 weeks ago. Please help.

  5. For the record no one could answer the equal protection / substantive due process challenge I issued in the first post below. The lawless and accountable only to power bureaucrats never did either. All who interface with the Indiana law examiners or JLAP be warned.

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