Archive for June, 2013

AMD Trade Secrets Lawsuit Allowed to Move Forward by Federal Judge

Recently, former employees attempted to get claims that they disclosed trade secrets of Advanced Micro Devices, Inc. to other employees at AMD after joining Nvidia Corp., another micro chip making company, in order to get the ex-colleagues to follow them. U.S. District Judge Timothy Hillman did grant the former employees’ request to toss out unfair competition claims, but did not dismiss claims of breach of contract and misappropriation of trade secrets.

Based in Sunnyvale, CA, AMD alleged that when former employees went to work for competitor Nvidia, they took sensitive company documents with them. According to the complaint, over 100,000 electronic files related to Advanced Micro Devices’ graphics-processing business were transferred by employees in the time period prior to their departure. The complaint, filed in January, also alleged that the former employees recruited other employees from AMD to leave the company.

Contracts signed by employees of AMD included no solicitation agreements, which means that workers are legally bound not to attempt to entice fellow employees or customers to leave the company. These solicitation agreements are valid both during an employee’s tenure with AMD, and for a specified time period after an employee terminates employment with the company.

According to news articles, AMD apparently does not suspect that Nvidia played a role in the trade secret and contract violations, as the company was not named in the lawsuit. The trade secrets’ lawsuit will move forward.

At Spotora & Associates, our Los Angeles business litigation attorneys understand the importance of protecting your company’s trade secrets. Our team of experienced and capable lawyers work diligently to prevent further harm to your business, and hold those who have divulged information illegally accountable.

Trademark Infringement Lawsuit Against Oprah Winfrey Continues After Winfrey’s Fair Use Defense Rejected

Recently, it was determined in an appeals court that Oprah Winfrey’s motion that a lawsuit regarding reverse infringement on the trademark “Own Your Power” be dismissed on her good faith. The case, brought against Winfrey by Simone Kelly-Brown, was remanded back to the district court in Manhattan.  Apparently, Ms. Winfrey had knowledge that a registered trademark using the term “Own Your Power” existed when she adopted the phrase.

Kelly-Brown uses the “Own Your Power” trademark in connection with her business, which provides motivational services.  According to various sources, Winfrey used the phrase on her website, at events and in a magazine after Kelly-Brown had applied to register the “Own Your Power” trademark.

Initially, Kelly-Brown’s claim was dismissed by the District Court who found that Winfrey’s use of the mark was considered fair use; however, the Second Circuit court reversed the lower court’s claim upon Kelly-Brown’s appeal, saying that Winfrey did not demonstrate fair use in the use of the phrase.

Winfrey argued that the phrase “Own Your Power” was adopted in good faith, that it was used only in a descriptive manner, and that there was absolutely no intention of benefiting from the good will of the registered trademark holder.  Ultimately the Second Circuit court found that Winfrey failed to satisfy the three elements that prove fair use, which include:

Ÿ  Use was made other than a mark

Ÿ  Use was made in a descriptive sense

Ÿ  Use was made in good faith

In the end, it was determined by the Second Circuit court that Winfrey could not satisfy these elements, and that Kelly-Brown may move forward with her claim of trademark infringement.

Individuals with trademark disputes are invited to learn more about the legal services provided by the Los Angeles business litigation attorneys at the Law Offices of Spotora & Associates.

In Business Disputes, is it Beneficial to Mediate Rather than Enter Into Litigation?

When companies become involved in business disputes over trademarks, copyrights, business agreements, contracts, or even partnerships it can be nerve-rattling to consider entering into the litigation process.  Not only can the prospect of filing a lawsuit make you uneasy, it can consume a lot of time – not to mention the costs both in terms of financial and emotional.  Mediation, an ADR (alternative dispute resolution) may be preferable in certain situations and can prevent the parties involved from becoming involved in a contentious lawsuit.

Ultimately, mediation is a way for both companies to peacefully settle certain business issues with the assistance of a mediator, who is a “neutral” party and often works in the position as both advisor and evaluator.  A professional mediator basically considers the arguments from both sides of the table, then determines the strengths and weaknesses of both sides.  Another type of mediator is the transformative mediator, who basically guides those involved from both companies who are having communication issues to a resolution made between the parties, on their own.

The biggest advantage of choosing mediation over litigation is cost, obviously.  However, many company owners find that mediation is a way to handle business issues in a way that is less hostile, more friendly, and ultimately lets both parties take part in coming up with a solution, rather than putting it all in control of a judge.  Essentially, companies are more empowered and relationships between companies can often be saved, because both are part of the solution due to their ability to take a direct and active role in the ultimate outcome.

There is no question that in many situations litigation is the only solution.  However, mediation offers several advantages to businesses including resolution that is more satisfactory to both parties, and often quicker settlement of the issue which saves all parties time, effort, and money.

As Los Angeles business attorneys who have successfully represented clients with all types of issues including business disputes, trademark infringement. intellectual property, contracts, business mergers and more, count on Spotora & Associates to determine the most appropriate path for your situation.

The Workplace and Social Medial Law – What Employers Should Know

With the growing advancements in technology, it’s no secret to anyone these days (even employers) that people are accessing social media sites like Facebook and Twitter almost constantly, from their smart phones, iPads, even their workplace computers.  Los Angeles employment attorneys understand that in a highly ‘connected’ world, companies are often worried about what their employees are doing online, what they are saying – and even if they’re being productive or spending more work time engaging in social media.

Should employers be able to demand an employee or potential employee’s sign in information to these sites, such as user ID and password?  This has been a hot topic of debate over recent months in state legislation talks.  As an employer in California, you should know that legislation has passed to protect private employees against having his or her social media account information accessed by employers.  Such legislation has passed in several states, including New Jersey, Delaware, Michigan, Illinois, and Maryland.  In fact, while private employees are currently protected from being required to disclose log in data for personal social media accounts to employers, a bill has been proposed in California which would give public employees such protection as well.

All of the hoopla over social media privacy began in 2010, when Robert Collins was interviewed for a position with the Maryland Department of Corrections.  According to a news article at Time Magazine, the individual who was interviewing Collins wanted to ensure that Collins had no affiliation with gangs, and therefore demanded access to the applicant’s Facebook account.  Ultimately, the ACLU became involved and Maryland was the first state to make it illegal for employers to request such information from prospective or existing employees.

Ultimately, employers who run small businesses in California, as well as those who are closely-held private companies, should update your employee handbook to include a social media policy provision.

Need assistance determining what policies should be included in your employee handbook regarding internet use and social media?  Contact the highly regarded Los Angeles business attorneys at Spotora & Associates.