In an era where trade secret misappropriation battles can shape corporate landscapes, the Apple v. Rivos case stands as a stark reminder of the importance of diligent onboarding practices when it comes to trade secrets. In this case, the court’s scrutiny of employee conduct underscores a crucial lesson: companies should ensure that new hires refrain from carrying confidential information from their previous employers. As exemplified by defendant Rivos, making an effort to remind new hires to avoid retaining confidential information can also go a long way.Here, we discuss the intricacies of the Apple v. Rivos case and provide several takeaways.
Commercial Litigation
The “State of the Arts” after Andy Warhol Foundation v. Goldsmith
By Nicole O. Swanson & David Munkittrick on
It has been eight months since the Supreme Court’s landmark copyright fair use decision in Andy Warhol Foundation for the Visual Art, Inc. v. Goldsmith. Much has been written on the subject, including in this forum, but in many ways it was a narrow decision. The Court held that the commercial licensing of Orange Prince, a work in Andy Warhol’s Prince series based on a photograph by Lynn Goldsmith, was not protected under the first factor of the four-factor fair use test under 17 U.S.C. § 107. Its discussion of the transformative use test emphasized the similarity of the uses the works were put to (depicting Prince on magazine covers), rather than the characteristics of the works themselves. This, the Court said, prevents judges from acting as art critics to determine the aesthetic differences between, or meanings behind, artistic works.
The Journey vs. The Destination: Analyzing Jury Deliberation Styles
By Jessica Griffith on
The role of juries in adjudicating cases has long been the subject of consternation and debate by those in the legal system. In civil jury trials, the jury acts as the fact-finder and must determine the proper level of liability (and where applicable, damages) to assign the defendant. Much psychological research has focused on how to craft trial procedures to assist juries with this complex task. For example, providing juries with both preliminary and final jury instructions has been found to improve decision-making processes and trial outcomes by giving jurors a cognitive framework to assess the evidence presented at trial. Other studies have observed that simplifying jury instructions, as well as allowing jurors to take notes and ask questions, can improve both juror comprehension and satisfaction. But how do jurors come to a verdict once they are sent to deliberate?
New FTC Resolution Confirms Commission’s Intent to Regulate AI and Paves the Way for Future Investigations and Enforcement Actions
By Marc Palmer on
Making do on its promise to “use every tool” in its arsenal to regulate artificial intelligence (‘AI”), the Federal Trade Commission (“FTC”) unanimously approved a resolution on November 21, 2023 authorizing the use of compulsory process in non-public investigations involving AI-related products and services.
Amendments to Federal Rule 702, Now in Effect
By Hannah Silverman on
Last year, we previewed impending changes to the federal rule that governs the admissibility of expert testimony: Federal Rule of Evidence (FRE) 702. Since our last blog post on this topic, Congress and the U.S. Supreme Court approved those amendments. And as of December 1, the amendments are in effect. Amended FRE 702 now reads:
Montana Supreme Court Finds Minimum Contacts in Social Media Posts Targeting State Residents
By Shiloh Rainwater on
Posting on social media about businesses located in another state could give rise to personal jurisdiction in that state, according to a recent landmark opinion by a sharply divided Montana Supreme Court. In Groo v. Montana Eleventh Judicial District Court, the Court considered whether several Facebook posts made by Melissa Groo, a New York-based wildlife-photography ethicist, concerning Triple D Game Farm, a wildlife-photography farm in Montana, supported personal jurisdiction in an action by Triple D against Groo in Montana state court for tortious interference with contractual relations and prospective economic advantage. In the posts, Groo had tagged individuals and companies doing business with Triple D, three of whom resided in Montana, and encouraged them to cancel their business with the company because of its alleged mistreatment of animals. Four Justices found the posts sufficient to exercise specific personal jurisdiction over Groo; three dissented.
Be Smarter Than a Lizard: Overcoming Reptile Theory in the Discovery Phase
By Chelsea Samuels on
It’s no secret: plaintiffs’ attorneys want to win big. Using reptile theory, plaintiffs (and their counsel) are enjoying gargantuan jury verdicts. Through thoughtful and strategic lawyering, however, the harsh effects of reptile theory can be avoided.
Amazon: The Prime Target in FTC Crackdown
By Portia Proctor on
On October 18, 2023, Amazon filed a motion to dismiss the Federal Trade Commission’s lawsuit alleging that the company deceived millions of consumers into nonconsensual Prime membership enrollment and thwarted members’ attempts to cancel their Prime subscriptions. In a heavily redacted complaint filed on June 21, 2023 in the Western District of Washington, the FTC charges Amazon with using “manipulative, coercive, or deceptive user-interface designs known as ‘dark patterns’ to trick consumers into enrolling in automatically-renewing Prime subscriptions,” in violation of the FTC Act and the Restore Online Shoppers’ Confidence Act (“ROSCA”). The FTC describes the Amazon platform as bombarding customers with options to sign up for Prime and obscuring options to shop without Prime, making non-Prime alternatives difficult for consumers to locate. In some cases, the FTC alleges, the button to complete a transaction did not clearly state the shopper was also agreeing to enroll in a recurring Prime subscription.