Following the lead of 46 other states and the District of Columbia, New Jersey has passed its own version of the Uniform Trade Secrets Act. The law has been sent to the Governor for signature.
Parties in trade secret litigation should not assume that courts will seal the judicial record to protect their trade secrets.
Parties to trade secret litigation often seek to shield their confidential information from the public record. One recent court observed that parties who seek to litigate in private should opt for arbitration.
Litigation parties often fight over the extent to which the confidential information they produce in discovery may be shared by opposing counsel with their clients. Producing parties often seek to place "Attorney Eyes' Only" limitations on their documents. Parties sometimes overlook the possibility that such documents may find sufficient protection somewhere in the middle between marking them as “Confidential” and “Attorney Eyes’ Only.”
In a suit filed by the ACLU, a court recently issued a protective order precluding a public school from enforcing confidentiality obligations against employees who disclose information in connection with “formal and informal discovery.” Would the court reach a similar result against private entities?