Intellectual Property and Technology: Intellectual Property and Technology Thursday, January 22, 2004


Today’s Assignments: Today’s Assignments From last time: Problem 2-4-Sonia Chien, Robert Chung, Jamie Cowan Rockwell-Rhiannon Cunningham, Samantha Evertt, Ricard Garces Problem 2-5-Joanna Gonzalez-Konetzke, Jessen Gregory, Deborah Gubernick Problem 2-5a-Justin Hollander, Lisa Kahle, Lauren Kerkhoff


Assignments for Today: Assignments for Today Thursday, 1/22 CB:54-72 E.I. Dupont-Stuart King, Bryce Kroha, Malgorzata Kulczycka Problem 2-7-Linh Lam, Michael Lane, John Leonard Problem 2-8-Christopher Longman, Anthony Lopez, Nathan Lowery Problem 2-9-Sebastian Lucier, Gurinder Mann, Jesica Pandika Chicago Lock-Scott Parks, Justine Phillips, Brian Pick Problem 2-10-Matthew Quigg, Elizabeth Razzano, Joshua Richman Problem 2-11-Anthony Rippo, Victor Russame, Rory Schermerhorn


Outline: Outline Problem 2-4 Rockwell Problems 2-5 & 2-5a DuPont Smith v. Dravo Problems 2-7, 2-8, 2-9 Chicago Lock Problem 2-10


Outline: Outline Problem 2-4 Rockwell Problems 2-5 & 2-5a DuPont Smith v. Dravo Problems 2-7, 2-8, 2-9 Chicago Lock Problem 2-10


Problem 2-4: Problem 2-4 Church of True Belief has secret scriptures. Some adherents form splinter church, House of Absolute Belief. Take a copy of scriptures. At trial, issue is whether scriptures are a trade secret.


Outline: Outline Problem 2-4 Rockwell Problems 2-5 & 2-5a DuPont Smith v. Dravo Problems 2-7, 2-8, 2-9 Chicago Lock Problem 2-10


Outline: Outline Problem 2-4 Rockwell Problems 2-5 & 2-5a DuPont Smith v. Dravo Problems 2-7, 2-8, 2-9 Chicago Lock Problem 2-10


Rockwell Graphic Systems, Inc. v. DEV Industries, Inc. : Rockwell Graphic Systems, Inc. v. DEV Industries, Inc. What happened? Rockwell manufactures or contracts for the manufacturing of printing presses and parts. Rockwell provides subcontractors “piece part drawings,” necessary to manufacture the parts. Fleck and Peloso worked for Rockwell, and then went to DEV. Peloso was fired by Rockwell for stealing “piece part drawings.” DEV maintains it got the drawings from customers.


Piece Part Drawings: Piece Part Drawings


Rockwell Graphic Systems, Inc. v. DEV Industries, Inc. : Rockwell Graphic Systems, Inc. v. DEV Industries, Inc. Judge Richard Posner The two different conceptions of trade secret protection are better described as different emphases. The first emphasizes the desirability of deterring efforts that have as their sole purpose and effect the redistribution of wealth from one to another.


Rockwell Graphic Systems, Inc. v. DEV Industries, Inc. : Rockwell Graphic Systems, Inc. v. DEV Industries, Inc. Judge Richard Posner The second emphasizes the desirability of encouraging inventive activity by protection its fruits from efforts at appropriation that are, indeed, sterile, wealth-redistributive—not productive—activities.


What was DEV’s main defense? (winning argument for SJ below): What was DEV’s main defense? (winning argument for SJ below) Rockwell “was impermissibly sloppy in its efforts to keep the piece part drawings secret.” What then is the appropriate standard for the level of precaution? Given that standard, was summary judgment appropriate?


Formula: Formula C = cost of the security measure P1= probability of theft without the secuirty measure P2= probility of theft with the security measure V= value of the trade secret C < P2-P1 * V


Rockwell Graphic Systems, Inc. v. DEV Industries, Inc. : Rockwell Graphic Systems, Inc. v. DEV Industries, Inc. Judge Richard Posner [O]nly in an extreme case can what is a “reasonable” precaution be determined on a motion for summary judgment, because the answer depends on a balancing of the costs and benefits that will vary from case to case.


Outline: Outline Problem 2-4 Rockwell Problems 2-5 & 2-5a DuPont Smith v. Dravo Problems 2-7, 2-8, 2-9 Chicago Lock Problem 2-10


Outline: Outline Problem 2-4 Rockwell Problems 2-5 & 2-5a DuPont Smith v. Dravo Problems 2-7, 2-8, 2-9 Chicago Lock Problem 2-10


Problem 2-5: Problem 2-5 Smith owns bar and develops a new drink. Instructs bartenders not to reveal the formula. Bartenders are told not to reveal the mix and mix the drink in secret. Jimmy Dean markets a premixed version of the drink. Testimony that it can be duplicated by taste, smell, and appearance. What if Jimmy Dean bribed a bartender? What if there is a sign, “Entry on these premises constitutes your agreement not to reverse engineer the “Mobile Mud”?


Problem 5a: Problem 5a MidContinent manufacturers signs & decals. Employees are “family & friends.” No confidentiality agreement. No “Confidentiality” stamp on documents. “We trust our employees.” Has MidContinent taken reasonable efforts to protect its secrets?


Outline: Outline Problem 2-4 Rockwell Problems 2-5 & 2-5a DuPont Smith v. Dravo Problems 2-7, 2-8, 2-9 Chicago Lock Problem 2-10


Outline: Outline Problem 2-4 Rockwell Problems 2-5 & 2-5a DuPont Smith v. Dravo Problems 2-7, 2-8, 2-9 Chicago Lock Problem 2-10


E.I. duPont deNemours & Co. v. Rolfe: E.I. duPont deNemours & Co. v. Rolfe Christopher took aerial photographs of new construction at duPont plant. Were the aerial photographs “misappropriation”? What standard does the court suggest? Does this make sense?


E.I. duPont deNemours & Co. v. Rolfe: E.I. duPont deNemours & Co. v. Rolfe Christopher took aerial photographs of new construction at duPont plant. Were the aerial photographs “misappropriation”? What standard does the court suggest? Does this make sense? Reverse engineering or independent research are ok. Without effort, may not appropriate if discover takes reasonable precautions.


E.I. duPont deNemours & Co. v. Rolfe: E.I. duPont deNemours & Co. v. Rolfe Christopher took aerial photographs of new construction at duPont plant. Were the aerial photographs “misappropriation”? What standard does the court suggest? Does this make sense? Reverse engineering or independent research are ok. Without effort, may not appropriate if discover takes reasonable precautions.


E.I. duPont deNemours & Co. v. Rolfe -Abdelkerim & Dem: E.I. duPont deNemours & Co. v. Rolfe -Abdelkerim & Dem Does the Restatement really support the courts position? CB:68, Comment f (indented paragraph) What do the listed activities in comment f have in common? Why not require duPont to build a “fence” (roof in this case)? Does the lack of fence affect the question whether it is a trade secret at all?


Outline: Outline Problem 2-4 Rockwell Problems 2-5 & 2-5a DuPont Smith v. Dravo Problems 2-7, 2-8, 2-9 Chicago Lock Problem 2-10 This material will be covered on 01-27-04


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