Lawyer Commentary Mondaq United States Dairy, LLC v. Milk Moovement, Inc.: Identifying Software Trade Secrets With Particularity To State A Claim For Trade Secret Misappropriation

Dairy, LLC v. Milk Moovement, Inc.: Identifying Software Trade Secrets With Particularity To State A Claim For Trade Secret Misappropriation

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A recent decision from the Eastern District of California illustrates the sometimes fine line between the need for plaintiffs to allege a claim for trade secret misappropriation in sufficient detail, while avoiding disclosing the trade secret in so much detail as to destroy it.

In Dairy, LLC v. Milk Moovement, Inc., Dairy, LLC ("Dairy") sued Milk Moovement, Inc. and Milk Moovement, LLC (collectively, "Defendants"), alleging trade secret misappropriation under both the Defend Trade Secrets Act and the California Uniform Trade Secrets Act and intentional interference with contractual relations. No. 2:21-cv-02233, 2022 WL 1103822, at *1 (E.D. Cal. Apr. 13, 2022). Defendants moved to dismiss all claims pursuant to Federal Rule of Civil Procedure 12(b)(6). Id.

Dairy and Defendants all provide software to companies in the dairy industry. Id. Part of Dairy's software, called the "producer payroll application," helps users comply with federal regulations regarding the minimum milk prices paid to dairy producers. Id. The software also...

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