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ARTICLE · 05 AUGUST 2015

Filer Beware! E-Filing Error Can Destroy Trade Secret Status

First rule of thumb in trade secrets litigation? A trade secret must be kept secret. It is painfully obvious, but modern practitioners must not grow complacent due to the convenience of electronic filing.

United StatesIntellectual Property

First rule of thumb in trade secrets litigation? A trade secret must be kept secret. It is painfully obvious, but modern practitioners must not grow complacent due to the convenience of electronic filing. Although trade secrets law does not command absolute secrecy, a recent e-filing snafu in HMS Holdings Corp. v. Arendt offers a cautionary tale from New York on how one botched upload could jeopardize a client's most prized possession.

In August 2014, Plaintiffs HMS Holdings Corp., Health Management Systems, Inc. and HMS Business Services Inc. (collectively "HMS") sued three former employees for misappropriation of trade secrets, and sued one of those employees for breach of his noncompetition and nonsolicitation agreement. HMS is a provider of cost containment solutions for government and commercial healthcare programs; it delivers third party liability services to state Medicaid agencies, with a focus on identifying alternative forms of coverage and recovering

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