Beware the Statute of Limitations in Trade Secrets
Misappropriation Cases
When a competitor or former employee misappropriates a
company's trade secrets, the company often does not know for an
extended period of time. This is especially true when the
perpetrator takes action to conceal its misappropriation. For these
reasons, the statute of limitations only starts to run once the
company knows or should have known of the misappropriation. This
rule, however, is not a universal remedy; companies should be aware
that once they have sufficient knowledge that misappropriation may
be occurring, they must take action or risk the running of the
statute of limitations. The recent decision in MGA
Entertainment, Inc. v. Mattel, Inc., Case No. B289709, ___
Cal.Rptr.3d ____, 2019 WL 5558188 (October 29, 2019) from the
California Court of Appeals reinforces these principles.
