USA Trade Secrets 2024

Knobbe Martens

Firm overview:

Recently noted for its work in representing Masimo in a smartwatch clash in which Apple was awarded just $250, Knobbe Martens has a strong trade secrets practice within its IP department.

The firm represents clients in trade secrets disputes on both US coasts, from offices in California, Seattle, New York and Washington, DC. Its attorneys combine technical and litigation expertise to advise companies on the complex issues surrounding trade secrets, including misappropriation under federal and state law, the Computer Fraud and Abuse Act, data breaches, and employee fiduciary duties, loyalty and poaching.

Knobbe Martens lawyers have written and spoken on trade secrets issues for a range of media outlets and organisations—including WIPR—and are frequently featured in legal directories for their expertise and accomplishments.

As well as favourable jury verdicts, the firm achieves success for its clients at earlier stages of the litigation process through measures such as temporary restraining orders, preliminary injunctions, summary judgments and settlements.

Team overview:

Partners Brian Horne and Ben Katzenellenbogen lead the firm’s Trade Secret & Employment Mobility Litigation practice. Los Angeles-based Horne has won significant verdicts for clients in a range of IP disputes, including a $70 million trade secret verdict that was later enhanced to more than $110 million.

Brian Claassen, partner in the firm’s Orange County office, played a key role in a number of key trade secrets matters for Masimo. He frequently leverages his legal expertise and technical skill to resolve high-stakes technology disputes and has protected his clients’ valuable trade secrets and patents through litigation, including obtaining exclusion orders, preliminary and permanent injunctions.

Key matters:

  • Masimo and Cercacor Laboratories v Apple, US District Court, Central District of California

Knobbe Martens represented related companies Masimo and Cercacor against Apple in a trade secret and patent infringement case pending in California. The plaintiffs sought more than $1 billion in unjust enrichment, alleging that Apple acquired trade secrets from a Cercacor former chief technical officer.

The trial ended with a hung jury in May 2023 and is being retried in November 2024. The case is significant in terms of the interplay between California trade secrets law and employee mobility and the obligation of employers to put in place safeguards to prohibit trade secret misappropriation and could result in a high damages award.

  • Masimo v True Wearables

Knobbe Martens represented Masimo against a former executive and his company True Wearables for trade secret misappropriation and other claims. Knobbe Martens secured a ruling that the former executive had misappropriated multiple Masimo trade secrets and violated his employment agreements, with the court ordering him to abandon at least 12 patent applications containing Masimo’s trade secrets and return all confidential information and documents.

The court also permanently enjoined the sale of True Wearables’ pulse oximeter product because Masimo’s related trade secrets were foundational to its health-sensing features.

Clients:

Masimo