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Current Developments in the Commercial Divisions of the
New York State Courts
Posted: April 14, 2018

Theft of Trade Secrets Claim Dismissed for Failure to Allege Wrongful Means

On April 3, 2018, the First Department issued a decision in BGC Partners, Inc. v. Avison Young (Canada) Inc., 2018 NY Slip Op. 02290, holding that a theft of trade secrets claim should have been dismissed for failure to allege the use of wrongful means in obtaining the trade secrets, explaining:

The cause of action for theft of trade secrets should be dismissed since in the circumstances the means by which defendants allegedly lured the brokers away from nonparty Grubb & Ellis, i.e., offering them competitive compensation, are not wrongful or improper.

(Internal citations omitted).

The law protects intellectual property in a number of ways, but that protection is not unlimited; indeed, as this decision shows. We frequently litigate intellectual property claims, including trademark, copyright and trade secret claims. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client have questions about whether you have, or face, a claim for theft or infringement of intellectual property.

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