ILNews

Courts must ID trade secrets

Michael W. Hoskins
January 1, 2008
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
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."
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  2. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  3. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

  4. You can put your photos anywhere you like... When someone steals it they know it doesn't belong to them. And, a man getting a divorce is automatically not a nice guy...? That's ridiculous. Since when is need of money a conflict of interest? That would mean that no one should have a job unless they are already financially solvent without a job... A photographer is also under no obligation to use a watermark (again, people know when a photo doesn't belong to them) or provide contact information. Hey, he didn't make it easy for me to pay him so I'll just take it! Well heck, might as well walk out of the grocery store with a cart full of food because the lines are too long and you don't find that convenient. "Only in Indiana." Oh, now you're passing judgement on an entire state... What state do you live in? I need to characterize everyone in your state as ignorant and opinionated. And the final bit of ignorance; assuming a photo anyone would want is lucky and then how much does your camera have to cost to make it a good photo, in your obviously relevant opinion?

  5. Seventh Circuit Court Judge Diane Wood has stated in “The Rule of Law in Times of Stress” (2003), “that neither laws nor the procedures used to create or implement them should be secret; and . . . the laws must not be arbitrary.” According to the American Bar Association, Wood’s quote drives home this point: The rule of law also requires that people can expect predictable results from the legal system; this is what Judge Wood implies when she says that “the laws must not be arbitrary.” Predictable results mean that people who act in the same way can expect the law to treat them in the same way. If similar actions do not produce similar legal outcomes, people cannot use the law to guide their actions, and a “rule of law” does not exist.

ADVERTISEMENT