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The Third Circuit recently affirmed a ruling out of the U.S. District Court for the Middle District of Pennsylvania, which held that a NASA subcontractor could sue for misappropriation of trade secrets under the Pennsylvania Uniform Trade Secrets Act (the UTSA), even though the subcontractor did not own the trade-secret information. The subcontractor, Advanced Fluid Systems, Inc. (AFS), had signed a contract granting exclusive ownership rights in the hydraulic systems it designed to the Virginia Commonwealth Space Flight Authority. But the Third Circuit held that AFS could nonetheless maintain a lawsuit when its former employee misappropriated the designs for the benefit of AFS competitors.
Continue Reading Non-Owner Allowed to Sue for Trade Secret Misappropriation Where the Owner Had “Lawful Possession” of the Trade Secret