ARTICLE · 10 JULY 2014

Inferring Trade Secret "Use" Based On The Potential For Harm

McDermott Will & Emery

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In the district court, Aspen claimed trade-secret misappropriation against M3, a company founded by and composed of former Aspen employees.

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Aspen Tech., Inc. v. M3 Tech., Inc.

Addressing the question of what constitutes "use" of a trade secret absent direct evidence, the U.S. Court of Appeals for the Fifth Circuit upheld the jury's finding of trade-secret misappropriation based in part on inferences of use based on potential harm to the trade-secret owner. Aspen Tech., Inc. v. M3 Tech., Inc., Case Nos. 12-20388; -20268 (5th Cir., May 29, 2014) (per curiam).

In the district court, Aspen claimed trade-secret misappropriation against M3, a company founded by and composed of former Aspen employees. Both Aspen and M3 develop and sell software for chemical companies. Aspen accused M3 of misappropriating its trade secrets in the form of product-development road maps, source code and a source-code manual.

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