Failing To Prepare Is Preparing To Fail

A recent case from the Federal Circuit upholding a jury's finding in favor of defendant offers lessons to both defendants and plaintiffs on preparing for trade secrets misappropriation actions. Both plaintiff, Raytheon, and defendant, Indigo, are companies in the infrared imaging equipment business. Of the four Indigo founders, three of them were former Raytheon employees, causing Raytheon to accuse Indigo of misappropriating its trade secrets. Specifically, Raytheon accused Indigo of using Raytheon's sequential vacuum bake recipes and in situ solder seal package assembly process taken by the former Raytheon employees to develop Indigo's recipes and processes.

At trial, however, the jury found that Indigo did not misappropriate either of Raytheon's trade secrets based on evidence that it developed its recipes and processes independently. This evidence included: