Trade Secrets, Restrictive Covenants, and Computer Abuse

Recent News:

Rebalancing IP Protection and Employee Mobility? [Daily Business Review]

Samuel Lewis authored an article discussing the complexities and challenges of using noncompetition agreements in intellectual property law to protect a company's trade secrets.

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In this era of intense competition, increased employee mobility and electronic information, theft of trade secrets, computer abuse, and employee raiding cases are becoming ever more prevalent and increasingly difficult to prevent. Additionally, the number of new federal and state statutes relating to restrictive covenants, trade secrets, computer abuse, and theft of electronic information, and the interaction of potentially conflicting state laws, increases the complexity of these matters for companies that do business in multiple jurisdictions. Add to this mix the Federal Trade Commission's Final Rule invalidating most noncompete agreements and the landscape is thornier than ever. Companies now face multi-dimensional problems involving the interaction of employment law, intellectual property law, computer law, cybersecurity law, insurance law, privacy law, and having to address those issues in multiple jurisdictions at both the state and federal levels — sometimes simultaneously.

Cozen O’Connor’s team of lawyers across the country are ready to assist national and multinational corporations, midsize businesses, and startups facing unfair competition matters. Our practice blends skilled attorneys from our labor and employment, intellectual property, and commercial litigation practices. Collectively, these attorneys have implemented and litigated nationwide restrictive covenants, invention assignment agreements, and confidentiality agreements. We have handled hundreds of injunction proceedings relating to theft of trade secrets, theft of computer data, restrictive covenants, and breach of employee loyalty in almost every state and court in the nation. Should a case proceed to trial, Cozen O’Connor attorneys have extensive first-chair jury-trial experience in large multi-jurisdictional cases involving restrictive covenants, theft of trade secrets, unfair competition, computer fraud and abuse, and duty of loyalty claims. We have successfully obtained and defeated emergency injunctions, won multimillion-dollar verdicts on behalf of plaintiffs, achieved full exoneration on behalf of defendants, and obtained fee awards on behalf of both, where possible.

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Experience

Prevailed on behalf of a private medical practice and its majority shareholders in a "business divorce" arbitration against one of their founding shareholders after uncovering that he was working to create a competing practice. After successfully compelling arbitration in NJ Superior Court, contentious motion practice and discovery, and a seven-day hearing, a three-arbitrator AAA panel found that the practice proved its claims for breach of fiduciary duty and breach of contract, and rejected the founder's minority shareholder oppression claim. The panel awarded the practice significant equitable relief, including enforcing a two-year restrictive covenant and ordering that the practice buy out the founder for only one-third of the fair value of his 25 percent interest under their shareholders' agreement's punitive, for "cause" termination provision.


Secured an arbitration award in in favor of the employer (a radiology practice) in a dispute with a physician over a non-competition agreement, which the panel found to be fully enforceable under Pennsylvania law.


Convinced the San Diego County Superior Court to sustain a demurrer on behalf of the new employer, without leave to amend, in an employment-related trade secrets misappropriation and customer interference case.


Egnyte hired seven employees from Citrix in North Carolina to work remotely and filed suit in state court in California both for declaratory relief and damages under California Bus. and Prof. Code 17200. Citrix then filed for injunctive relief in Florida state court against Egnyte and the seven former employees. We successfully moved to stay/abate the second filed Florida case. After the stay was lifted, we moved to dismiss the Florida case for lack of jurisdiction. The lower court denied the motion, but was reversed by the appellate court.  After 11 months of no injunction, the case settled favorably for our clients.   


Mediware brought suit for breach of restrictive covenants and theft of trade secrets against four of its former employees who left after selling Mediware a blood collection software program and then starting their own company. After taking the case over from a top-25 law firm, we successfully defeated an evidentiary injunction and then successfully resolved this matter.


Represented St. Jude Medical in a series of 16 cases involving over 50 sales representatives from Intermedics in over a dozen different jurisdictions, when that company's assets were acquired by Guidant Corp. Guidant tried to enforce the covenants and confidentiality provisions. After successfully obtaining an anti-suit injunction against Guidant, the cases settled favorably, resulting in hundreds of millions of dollars in new sales for the plaintiffs.


Won a five-day jury trial in federal court regarding an alleged breach of covenant not to compete, theft of trade secrets, and breach of term-of-years contracts and counterclaims for breach of contract, tortious interference and theft of confidential information. With a verdict entitling our clients to up to $2.5 million in attorneys' fees and costs, the case settled for an undisclosed amount.


Represented St. Jude Medical in a theft of trade secret case involving a former employee who downloaded the client's server and fled to China to set up a competing medical device company with the assistance of a Chinese government-backed company. Jury verdict of more than $2.3 billion.


Represented St. Jude Medical against a sales representative, his wife, and her new employer, Medtronic. The sales representative was funneling sales from St. Jude to Medtronic through his wife. The suit was brought by St. Jude in Florida, and thereafter by Medtronic in Minnesota. After the Florida court issued an injunction preventing the second-filed Minnesota action from proceeding, the parties entered into private binding arbitration. After a 4-week trial before a three-judge panel, the client was awarded a confidential multimillion-dollar verdict plus more than $1.5 million in fees.


Defended St. Jude Medical S.C. and five of their sales representatives who formerly worked for rival manufacturer Biosense Webster, Inc. Biosense alleged that the former employees could not sell electrophysiology biomedical devices to its clients for St. Jude, regardless of whether or not they were competing devices. After two injunction hearings, the court declined to enter an injunction and counterclaims were filed. The case thereafter settled and the employees were permitted to work for St. Jude.


Brought in to dissolve an injunction against five sales representatives in Maryland who were given large bonuses to join St. Jude. The injunction was dissolved after an evidentiary hearing and the case thereafter settled favorably.


Obtained a temporary restraining order on behalf of St. Jude Medical against two former sales representatives, both of whom left St. Jude to join a competitor. The temporary restraining order was upheld and converted to a preliminary injunction by the court and a favorable settlement was negotiated thereafter.


Publications

NLRB General Counsel Issues Memorandum Arguing Noncompetes are Illegal [Alert]

October 17, 2024

Aaron Holt and Cassie Jacobsen discuss a recent memorandum from NLRB General Counsel Jennifer Abruzzo about the legality of noncompetes.

Rebalancing IP Protection and Employee Mobility? [Daily Business Review]

May 01, 2024

Samuel Lewis authored an article discussing the complexities and challenges of using noncompetition agreements in intellectual property law to protect a company's trade secrets.

FTC Issues Final Rule Banning Employee Non-Compete Agreements [Alert]

April 25, 2024

The FTC has issued a Final Rule banning all new noncompete agreements for workers, including senior executives, effective 120 days after publication in the Federal Register.

New Law in NY Prohibits Certain Employee Invention Assignment Agreements [Alert]

October 16, 2023

Michael Schmidt discusses the new law that will impact long-held policies and practices and require employers to review their policies and form agreements.

New York Assembly Passes Bill to Ban Non-Competes [Alert]

June 22, 2023

On June 20, 2023, the New York State Assembly passed S3100A (Ryan)/A1278B (Joyner) on non-compete agreements and certain restrictive covenants.

Non-Competes: The NLRB Has Entered The Chat [Alert]

June 09, 2023

The National Labor Relations Board (NLRB) has issued a memorandum that could make it more difficult for employers to enforce non-compete agreements.

A Third Party in New Jersey May be Unable to Avoid Fee Awards Under an Exception to the American Rule [Alert]

May 23, 2023

The New Jersey Appellate Court ruled that, under an exception to the American Rule, a third party can be liable for attorneys’ fees in certain situations.

What Minnesota’s Imminent Ban on Non-Competes Means for Employers [Alert]

May 18, 2023

Minnesota’s employment landscape is on the brink of significant transformation as proposed legislation banning almost all non-compete agreements progresses.

Events & Seminars

Past Events

Health Care & Life Sciences 2025

December 05, 2024 - Philadelphia, PA
[+] [View All Events]

In The News

Best Lawyers Honors More Than 250 Cozen O'Connor Attorneys in Best Lawyers in America 2026 Edition

August 21, 2025

Best Lawyers selected more than 250 Cozen O'Connor lawyers from 26 of the firm's US offices for inclusion in the 2026 edition of The Best Lawyers in America.

Michael Schmidt Named Recipient of Law.com’s 2025 New York Legal Awards

July 28, 2025

Michael Schmidt has been selected as an award recipient in the Distinguished Leaders category for the New York Law Journal and Law.com’s 2025 New York Legal Awards.

Seven Cozen O’Connor Attorneys Named to 2025 Minnesota Super Lawyers

July 15, 2025

Christopher J. Bellini, Heather L. Marx, and Thomas G. Wallrich were recognized as Super Lawyers, and Paul D. Hallgren, Cassandra Jacobsen, Samuel E. Mogensen, and Jon M. Schoenwetter were named Rising Stars.

Which Rule is ‘Dead’ and Which Will Go into Effect Under Trump? Attorneys Weigh In

November 06, 2024

David Barron, Michele Ballard Miller, and Michael Schmidt were quoted in an HR Dive article discussing the impact of the upcoming Trump administration on key labor regulations.

FTC Fails 1st Test Of Rulemaking Push In Noncompetes Loss

August 21, 2024

Michael Schmidt was quoted in a Law360 article discussing U.S. District Judge Ada E. Brown’s ruling against the Federal Trade Commission’s (FTC) ban on employment noncompete agreements.

Best Lawyers Honors More Than 200 Cozen O'Connor Attorneys in its Best Lawyers in America 2025 Edition

August 15, 2024

Best Lawyers selected 242 Cozen O’Connor lawyers from 24 of the firm’s U.S. offices for inclusion in the 2025 edition of The Best Lawyers in America and Best Lawyers: Ones to Watch in America.

FTC's Non-Compete Ban Likely to Face SCOTUS Challenge, Say Lawyers

April 24, 2024

James Gale was quoted in a World IP Review article discussing the potential for the U.S. Supreme Court to overturn the Federal Trade Commission’s (FTC) rule banning noncompetes.

Best Lawyers Honors More Than 200 Cozen O'Connor Attorneys to its Best Lawyers in America 2024 Edition

August 17, 2023

Best Lawyers selected 230 Cozen O’Connor lawyers from 24 of the firm’s U.S. offices for inclusion in the 2024 edition of The Best Lawyers in America.

Your Non-compete Might Be Illegal: NLRB Turns Up Heat for Rank-and-File Workers

June 16, 2023

Michael Schmidt was quoted in the New Jersey Law Journal discussing the National Labor Relations Board's memo warning that employment noncompete clauses for nonmanagerial employers are illegal.

[+] [View All News]

Contacts

James A. Gale

Co-Chair, Intellectual Property Litigation

jgale@cozen.com

(305) 358-1991

People

Awards

Best Lawyers Honors More Than 250 Cozen O'Connor Attorneys in Best Lawyers in America 2026 Edition

August 21, 2025

Best Lawyers selected more than 250 Cozen O'Connor lawyers from 26 of the firm's US offices for inclusion in the 2026 edition of The Best Lawyers in America.

Seven Cozen O’Connor Attorneys Named to 2025 Minnesota Super Lawyers

July 15, 2025

Christopher J. Bellini, Heather L. Marx, and Thomas G. Wallrich were recognized as Super Lawyers, and Paul D. Hallgren, Cassandra Jacobsen, Samuel E. Mogensen, and Jon M. Schoenwetter were named Rising Stars.

Best Lawyers Honors More Than 200 Cozen O'Connor Attorneys to its Best Lawyers in America 2024 Edition

August 17, 2023

Best Lawyers selected 230 Cozen O’Connor lawyers from 24 of the firm’s U.S. offices for inclusion in the 2024 edition of The Best Lawyers in America.

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