Trade secrets: Bad Deal Leads to Trade Secrets Suit

WE have something different in Southeast Texas Record's Texas company claims bad faith deal led to theft of trade secrets, patent infringement. Not a departing employee but allegations of a potential buyer making off with trade secrets.

"The 26-page original complaint gives detailed descriptions of meeting, correspondence and negotiations between TAOS and Intersil executives, including PowerPoint presentations given at Intersil offices in California and dinner meetings in Texas.

'Throughout these discussions, Intersil repeatedly claimed that Intersil was not developing technology for infrared light reduction similar to that used in the TAOS TSL256x sensors; and Intersil wanted to enter that market as quickly as possible through a business deal with TAOS,' the complaint states."

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TAOS is claiming not only patent infringement, but also breach of contract under California law, trade secret misappropriation under Texas law and tortious interference with prospective relations under Texas law.

The company alleges that it had engaged in negotiations with Apple and Dell to provide light-to-digital optical sensors for use in the next generation Apple iPhone (3G), the Apple iPod Touch and Dell's notebook computers, but Intersil interfered with the prospective contracts and marketed its own products at a lower price than that offfered by TAOS.

yes, this scenario could happen in Indiana. Like all trade secret cases the trick lies in prevention. Which leads to my usual question: what are you doing to protect your trade secrets?