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ARTICLE · 16 SEPTEMBER 2013

Know When To Fold ‘Em: Avoiding Bad Faith When Litigating Trade Secrets Cases

Orrick
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In the recent case of All American Semiconductor LLC v. APX Technology Corp., a California appellate court affirmed a trial court's award of $200,000 in attorneys' fees against a plaintiff for prosecuting a trade secret case in bad faith.

United StatesIntellectual Property
James McQuade
James McQuade
Geoffrey Moss
Geoffrey Moss
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In his classic song The Gambler, Kenny Rogers famously advised: "You got to know when to hold 'em, know when to fold 'em, know when to walk away, know when to run." It's good guidance for surviving a poker table, but also important to plaintiffs prosecuting trade secret claims.  Understanding your evidence — or lack thereof — can mean the difference between winning or losing and having to pay your opponent's attorneys' fees.

In the recent case of All American Semiconductor LLC v. APX Technology Corp., a California appellate court affirmed a trial court's award of $200,000 in attorneys' fees against a plaintiff for prosecuting a trade secret case in bad faith.  Though the case is not published, it is a good reminder that aggressively pursuing and maintaining trade secret claims based on speculation and suspicions, without strong evidence, can have serious consequences.

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