Following the Legislature’s 2024 amendments to Section 16600, a new spotlight has been shown down on the so-called Trade Secret Exception and the rift that has emerged over the past few years between California courts about its continued application. Ultimately, the California Supreme Court will likely be called upon in the near future to address whether—and to what extent—an employer may include restrictive covenants in an employment agreement as necessary to protect the employer’s trade secrets. Until it does, litigants may credibly argue that the legislature’s recent amendments to Section 16600 abrogated the exception, diminished the exception, or had no effect on it at all.
A presumption of irreparable harm in trademark cases may be retired, but evidence of likelihood of confusion can still support an inference of irreparable harm.
Trade dress issues are complex and can often be time consuming. Companies facing these issues can often learn from past precedent. This and selecting an effective attorney for representation can make or break a case.
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