Trade secret cases present an intrinsic conflict between the open court principle and the confidential nature of trade secrets. Plaintiffs are often unwilling to identify and define their trade secrets with particularity, even under protective orders. However, this strategy denies defendants fair knowledge of allegations against them. Courts should ensure that defendants have a fair opportunity to prepare a defense without unnecessary exposure of the alleged trade secrets.
In Insulet v. EOFlow, No. 2024 (Fed. Cir. June 17, 2024), the U.S. Court of Appeals for the Federal Circuit revisited this issue and reversed a preliminary injunction granted by the U.S. District Court for the District of Massachusetts. Insulet and EOFlow are medical device manufacturers that make insulin pump patches. In 2017, four former Insulet employees joined EOFlow. Six years later, after reports surfaced that a third party, Medtronic, had started a diligence process to acquire EOFlow, Insulet sued EOFlow in the district court for claims including misappropriation of trade secrets.
