TRADE SECRETS

AN INTELLECTUAL PROPERTY RIGHT

PRESENTATION BY
ANKIT PRAKASH, ANUBHA GOEL, JAPNEET KAUR, PHALGUNI,
RUPAL HATOJ, SWATI SHARMA
SEMESTER 7
LEATHER DESIGN DEPARTMENT
NIFT, NEW DELHI

TRADE SECRETS
A trade secret is a formula, pattern, physical
device, idea, process, or compilation of
information which is not generally known or
reasonably ascertainable, by which a
business can obtain an economic advantage
over competitors or customers.
SOURCE OF TRADE SECRET
Trade secret protections come from a combination
of state and federal laws

Ways to Protect Trade Secrets

Restrict access to the information (lock it away in a
secure place, such as a bank vault)
Limit the number of people who know the
information
Have the people who know the trade secret agree in
writing not to disclose the information (sign nondisclosure agreements)
Have anyone that comes in contact with the trade
secret, directly or indirectly, sign non-disclosure
agreements
Mark any written material pertaining to the trade
secret as proprietary

Advantages of Trade Secret

Protection
Unlimited duration -trade secrets could
potentially last longer than patents (20 years)
and copyrights
Your protection is theoretically worldwide
No application required
No registration costs
No public disclosure or registration with
government agency
Effective immediately

CASE STUDY
KOLON INDUSTRIES
vs.
KEVLAR
Crowell & Moring and McGuireWoods LLP served as cocounsel to DuPont on the case.

CHALLENGE
South Korean textile company Kolon
Industries was stealing trade secrets of the
Kevlar product line, a key material in
bulletproof vests, fiber optic cable, brake pads,
and more.
In 2009, DuPont filed suit against Kolon,
alleging extensive theft of trade secrets related
to the manufacturing and sale of the Kevlar
product of DuPont.

SOLUTION
The first step was to evaluate the litigation options, including
the court system and the International Trade Commission in the
U.S.
Then they developed a comprehensive case strategy that focused
on all aspects of the case: the civil litigation in the United States;
potential criminal prosecution; and the remedies available when
a large foreign conglomerate steals critical technology.
Given the magnitude of Kolons theft, they also worked to
develop a case theory that would allow DuPont to recover its
R&D expenditures for Kevlar.
Finally, they assembled a diverse team spanning multiple
practice areas, offices, and non-attorney trade policy advisors at
C&M International, an affiliate of Crowell & Moring that
provides expertise on international trade issues.

RESULT
They secured a jury verdict for DuPont after a sevenweek trial and convinced the Department of Justice to
bring extensive criminal charges against Kolon, all of
which led Kolon to settle the case on highly favorable
terms for DuPont.
In April 2015, Kolon agreed to pay DuPont $275
million in damages and restitution and pleaded guilty
to criminal charges resulting in an $85 million
criminal penalty.
This case serves as a benchmark for how to develop
and win large, complex, international litigation
matters.

THANK YOU