DOMESTIC TRADE SECRET ENFORCEMENT FOR FOREIGN MISAPPROPRIATION

1
DOMESTIC TRADE SECRET ENFORCEMENT FOR FOREIGN
MISAPPROPRIATION

• Thomas L. Duston, Partner
• Marshall, Gerstein Borun LLP
• Chicago, IL

2
Overview

• Choice of Forum
• Service of Process
• Personal Jurisdiction
• Remedies

3
FORUM

• Federal Court
• Diversity28 U.S.C. 1332(a)(2)
• Foreign State28 U.S.C. 1330
• Federal Question28 U.S.C. 1331
• State Court
• International Trade Commission (ITC)
• Arbitration

4
PROCESS

• Within the United States/Territories
• IndividualsFRCP 4(e)
• CorporationsFRCP 4(h)
• Outside the United States
• IndividualsFRCP 4(f)
• CorporationsFRCP 4(h)(2) and 4(f)
• Foreign StateFRCP 4(j)(1) and 28 U.S.C. 1608

5
PROCESS

• Hague Convention
• Central Authority
• Form USM-94 and sealed original/translation in
  duplicate
• Mail with Fee to
• Department of Judicial Assistance and Foreign
  AffairsMinistry of Justice of the People's
  Republic of China10 Chaoyangmen Nandajie,
  Chaoyang DistrictBeijing 100020ChinaTel.
  (8610) 6250-6239
• May NOT Serve Directly By Mail

6
PERSONAL JURISDICTION

• State Limits (Diversity cases)
• Long-Arm Statutese.g., Illinois vs. Ohio
• Constitutional Limits
• Minimum Contacts
• Other Limits
• Forum Non Coveniens
• Sovereign Immunity

7
FED. CT. REMEDIES

• Damages
• Domestic AssetsWrit of Execution (FRCP 69)
• Chinese/Other Assets
• Injunction
• Extraterritorial Effect
• Acting in Concert
• Contempt

8
ITC

• Section 337(A)(1)(a) Prohibits
• Unfair methods of competition and unfair acts in
  the importation of articles into the United
  States, or in the sale of such articles by the
  owner, importer, or consignee, the threat or
  effect of which is
• (i) to destroy or substantially injure an
  industry in the United States
• (ii) to prevent the establishment of such an
  industry or
• (iii) to restrain or monopolize trade and
  commerce in the United States.

9
ITC FEATURES

• Trade Secret Misappropriation Unfair
  Competition
• In Rem Jurisdiction
• Discovery Accelerated
• Decision within 12-18 Months

10
ITC REMEDIES

• Temporary Exclusion Order
• Cease and Desist Order
• Exclusion from Entry Order

11
ARBITRATION

• Convention on the Recognition and Enforcement of
  Foreign Arbitral Awards
• Awards Recognized
• Procedure
• Grounds for Refusal