Posts Tagged: "unfair competition"

U.S. Chamber Tells FTC it Should Withdraw Its Proposal on Noncompetes

In January of this year, the Federal Trade Commission (FTC) proposed a new rule that would ban employers from using noncompete clauses for their employees. In an announcement, the FTC said that the use of noncompete clauses is “a widespread and often exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses.” The agency estimated the new rule could increase wages by $300 billion a year, as firms would be encouraged to do more to keep their workers. The proposed rule change was opened for public comment in January, and the deadline for submissions was extended from March 20 to April 19 in early March. As of April 18, the Regulations.gov website indicated that 24,259 comments had been received and 14,946 posted. With the comment period coming to a close this week, the U.S. Chamber of Commerce has weighed in, urging April Tabor, FTC Secretary to withdraw the proposed rule.

Complete Genomics Sues Illumina for Antitrust and Unfair Competition Violations

Complete Genomics, Inc., BGI Americas Corp., and MGI America’s Inc. (Complete Genomics) have filed suit against Illumina, Inc. alleging violation of federal antitrust statutes and California unfair competition laws in the U.S. District Court for the Northern District of California, San Francisco Division. The January 11 complaint contends that Illumina obtained at least three of the patents Illumina has asserted against Complete Genomics in an unlawful, anticompetitive manner. The complaint argues that two of the patents asserted by Illumina are invalid based on fraud on the United States Patent and Trademark Office (USPTO) and that there was no basis for asserting infringement with respect to the third patent.

Greta Thunberg Does Not Need a Trademark Registration

Climate activist Greta Thunberg is reportedly planning to register her name as a trademark based on her fears that third parties will exploit her identity for commercial gain. While registering a trademark has many advantages under U.S. law, she can likely accomplish her goal of protecting her name without the cost, delay, and uncertainty associated with the trademark registration process. As an initial matter, a trademark does not exist in the abstract. It is only protectable in connection with particular identified goods and services. Consequently, her trademark (or service mark) application would need to identify the goods or services she offers or intends to offer under the mark. To obtain registration, she would ultimately need to provide specimens showing technical trademark (or service mark) use. 15 U.S.C. § 1051.

Eight Tips to Protect Your Trade Secrets with Effective Restrictive Covenant Agreements

Trade secret theft is often an inside job. Employees who know they’re about to leave for a competitor or start their own competing business will sometimes try and get an unfair head start by taking their employer’s confidential information—customer lists, strategic plans, etc.—as they head out the door. A necessary tool for preventing the misappropriation and use of a company’s valuable trade secrets is a well-crafted employee restrictive covenant agreement. Having employees under at least some form of such an agreement is important for two reasons. First, both state and federal trade secret statutes require employers to take reasonable steps to protect the secrecy of information sought to be protected under those statutes. Second, restrictive covenant agreements provide employers contractual remedies, over and above the statutory trade secret protections, that can be used to prevent theft and use of a company’s confidential information.

Facebook Sued by FinTech Company Over Calibra Logo

Facebook is being sued by online banking company, Finco Services, Inc., which operates as Current, for trademark infringement, unfair competition, and false designation of origin relating to Facebook’s controversial subsidiary, Calibra, which plans to launch the digital currency Libra by 2020. Current’s complaint, filed in the U.S. District Court for the Southern District of New York on October 10, says that the company hired Character, a branding and design agency, in 2016 to develop a logo and branding strategy for Current’s banking services and mobile app. The resulting logo, and iterations thereof, have been used by the company since at least as early as 2016.