Category Archives: Business Risk

Redefining Your Business Strategy for Post #Covid – 19: A Free @Simio Webinar Tomorrow May 7, 11:00 AM – #DataSimulation*

How do you plan for today and the future in a time of uncertainties? Do you simply wait out the pandemic, or apply analytics to develop workable strategies that keep your business functional?  

This FREE and short Simio webinar TOMORROW on May 7th, 2020 at 11:00 am ET (3:00 pm UTC) will share insights that will allow you to see how you can apply simulation to evaluate different response scenarios for your business.  
  Tomorrow’s webinar will give a glimpse into data simulation and how it can be used to predict outcomes based on your available options. It will also showcase the importance of data simulation modeling in providing insight for capacity planning and predictive analytics during a pandemic and a post-pandemic scenario. Stakeholders, managers, and decision-makers will learn valuable lessons on advanced planning and resource management using Simio as an analytical tool. This webinar will also help employees across every industry understand why certain decisions are been taken and the importance of resource management.  Regardless of your industry, you will learn how to apply simulation to enhance daily operations and manage complex processes.  
Presenters: 1) Dan O’Neil, Health Systems Innovation Lead at Johns Hopkins University Applied Physics Laboratory 2) Adam Sneath, Application Engineer at Simio.
Click Here to Register Today: or use this link to Simio, LLC in Pittsburgh: https://www.simio.com/resources/webinar/2020-05-07-Simio-Webinar.php

* This announcement is not providing legal advice or is it in any way an endorsement of SIMIO by any lawyer or law firm, but merely a suggestion of a possible resource for businesses and individuals as businesses and health care facilities re-open. Houston Harbaugh and Henry Sneath are not involved in the content development, nor presentation of this program.

#ClassAction Lawsuit Challenges #Pennsylvania #Governor #Wolf’s #COVID-19 #Closure Order

Commonwealth of Pa. Flag

What appears to be the first constitutional challenge to #Pennsylvania Governor #Wolf’s #Covid-19 Closure Orders has been filed in the Pennsylvania Eastern District (Philadelphia) Federal Court. In Schulmerich Bells, LLC et al v. Thomas W. #Wolf (Governor of Pa.) and Rachel Levine, M.D. (Pa. Sect of Health) the Plaintiffs bring class action and declaratory judgment claims challenging the constitutionality of the Governor’s Covid-19 mitigation closure orders which shut down the physical operations of many Pennsylvania businesses deemed not to be “life sustaining”. See the Complaint here:

The Complaint begins with the “takings” quote from the 5th Amendment as cited in Armstrong v. United States, 364 U.S. 40 (1960) that the guarantee that “private property shall not be taken for a public use without just compensation was designed to bar Government from forcing some people alone to bear public burdens which, in all fairness and justice, should be borne by the public as a whole.” Interesting start in this context. The theory appears to be that the Governor has placed the “cost of these closure orders – issued for the benefit of the public – squarely upon the shoulders of private individuals and their families” without just compensation. Schulmerich, from Bucks County, is alleged to be the oldest manufacturer of orchestral quality musical handbells in the US.

Schulmerich repairs handbells and chimes and claims that Spring and Summer are its busiest seasons. Plaintiff’s claim a trickle down effect for their employees, suppliers, performing customers and so on. The company has already laid off 9 workers. The purported class is broad and appears to contemplate inclusion of anyone affected by these orders. Alleged exclusions from the class include inter alia, any persons unemployed at the time of the orders, and any persons working for companies deemed to be “life sustaining”, which were not ordered to be closed. The Plaintiffs claim that the class members could number in the millions. We will monitor this and other similar lawsuits.

Was the 2017 “NotPetya” Ransomware Attack an Act of War?

This is the question being litigated in a high-stakes cyber insurance coverage dispute between global snack food giant, Mondelez International, and its insurer, Zurich American Insurance Company, in Illinois state court. “NotPetya” was a 2017 ransomware attack in which infectious code impacted a number of global corporations, including Mondelez, encrypting computer hard drives and demanding payment for access to the data. Mondelez claims that it suffered damage to its hardware and operation software systems valued in excess of $100 million as a result of the attack. In early 2018, the U.S. and its allies publicly attributed the cyberattack to the Russian government. Russia denied the allegations. Modelez submitted an insurance claim to Zurich under an all-risk property insurance policy. Mondelez alleges that Zurich denied the claim based on a policy exclusion that excluded coverage for “loss or damage directly or indirectly caused by or resulting from … [a] hostile or warlike action … by any government or sovereign power … or agent or authority [thereof].” In October 2018, Mondelez filed suit against Zurich in Cook County, Illinois to determine whether the exclusion applies. According to the docket the case is currently pending, and working its way through the discovery process.

This case is being closely watched by corporations and insurers alike as it may have broad implications on cyberattack coverage for both traditional and specialized cyber insurance policies that contain the same or similar exclusions. What evidence will the insurer present to seek to prove that this war exclusion applies?

Pieces by Brian Corcoran on Lawfare (here) and Jeff Sistrunk on Law360 (here) each contain in-depth discussions of the case and its potential implications on the cyber insurance market. The docket for the case can be found here (select the Law Division and enter Case Number 2018-L-011008).

Posted by R. Brandon McCullough attorney at Houston Harbaugh, P.C. 401 Liberty Avenue, Pittsburgh, PA 15222. Brandon concentrates his practice primarily in the areas of insurance coverage and bad faith litigation, complex commercial and business litigation and appellate litigation. Please contact Mr. McCullough at 412-288-4008 or mcculloughb@hh-law.com with any questions pertaining to this article or any other legal matters.

BLOCKCHAIN: Is it the Next Big Step in Data Security?

From Law.Com and its Legaltech news former Microsoft CTO Adrian Clarke (Evident Proof) reports on the technology of Blockchain and its purported major security benefits for the supply ecosystem. “The blockchain is a transaction ledger that is uneditable and virtually unhackable. New information can be written onto the blockchain, but the previous information (stored in what are known as blocks) can’t be adjusted. Every single block (or piece of data) added to the chain is given an encrypted identity. Cryptography effectively connects the contents of each newly added block with each block that came before it. So any change to the contents of a previous block on a chain would invalidate the data in all blocks after it.” Clarke’s report here is perhaps some comfort for an exponentially growing sector of the world wide economy which relies on supply chain management on a massive scale. See his piece in Law Journal Newsletters at http://tinyurl.com/y7mqfnem 

Attorneys Bill Cheng and John Frank Weaver at McLane Middleton, P.A. in New Hampshire posted this piece in the NH Business Review at: http://tinyurl.com/yblh6nqp regarding the interaction between Blockchain and Bitcoin and how the GDPR for example will struggle to deal with these technologies, given the protections that GDPR attempts to provide to data owners so that they can control their personal information and data. Blockchain, particularly in conjunction with Bitcoin as the currency for a Blockchain secured transaction will prove a challenge to the GDPR rules. CTOs, Industrial Engineers and Supply Chain designers have big decisions to make in the years to come regarding security and whether Blockchain is the answer to some data protection issues. Photo courtesy of Law.Com.

Posted by Henry M. Sneath, Esquire Co-Chair Litigation Practice Group and Chair of the IP Practice Group: Houston Harbaugh, P.C.  401 Liberty Avenue, Pittsburgh, Pa. 15222Sneath is also an Adjunct Professor of  Law teaching two courses; Trade Secret Law and the Law of Trademarks and Unfair Competition at Duquesne University School of Law. Please contact Mr. Sneath at 412-288-4013 or sneathhm@hh-law.com

 

 

Opinion from @Proskauer Rose: Urges More Consistency in Non-Competes. Federalization?

@Proskauer Rose Attorney Steve Kayman and Judicial Law Clerk Lauren Davis published this opinion piece on Law 360 to all of whom we acknowledge their copyright protection. http://tinyurl.com/yaaonlmd  “A Call for Nationwide Consistency on Noncompetes” rightly urges for more consistency in the construction and application of laws on Restrictive Covenants and Non-Competes in employment agreements and in the workplace. The authors correctly point out the difficulty that lawyers have in advising corporations, particularly large ones, about the enforceability of restrictive covenants especially when the business and/or employee have interstate commerce. Some states are essentially outlawing non-competes and if an employee leaves one state to work in another, the choice of law and jurisdiction issues generally erupt in any litigation. Kayman rightly points out that courts are looking to extra contractual facts to assist in making a breach of contract decision in lawsuits over these agreements. Finally – Kayman and Davis suggest a possible parallel between this issue and the Defend Trade Secrets Act (DTSA) which has now created a federal remedy for misappropriation of trade secrets. Trade secret claims are often paired with non-compete claims so this parallel, and new federal legislation might be the solution. The law on these issues is clearly in a state of flux. We thank Kayman and Davis for this opinion piece.

Posted by Henry M. Sneath, Esquire Co-Chair Litigation Practice Group and Chair of the IP Practice Group: Houston Harbaugh, P.C.  401 Liberty Avenue, Pittsburgh, Pa. 15222Sneath is also an Adjunct Professor of  Law teaching two courses; Trade Secret Law and the Law of Trademarks and Unfair Competition at Duquesne University School of Law. Please contact Mr. Sneath at 412-288-4013 or sneathhm@hh-law.com

Business: Seeking Predictability in an Era of Uncertainty

Here is an article I wrote which was published by DRI in their IDQ (In-house Defense Quarterly) to promote the DRI Corporate Counsel Round Table meeting in Washington D.C. which was held in January. It highlights the uncertainty in business markets and the role of the courts in same. See the article at this link: http://tinyurl.com/y9mov84l 

Posted by Henry M. Sneath, Esq.                                                         Shareholder and Director;                                                                                    Co-Chair of the Litigation Department;                                                    Chair of the IP Department;                                                                         Houston Harbaugh, P.C.  (www.hh-law.com)                                                    Pittsburgh, Pa.                                                                                                              Please contact Mr. Sneath at 412-288-4013 or sneathhm@hh-law.com 

 

 

From Legal Tech/Law.Com news: A Bug Bounty for Discounts on Cyber Insurance

From our friends at Law.Com: In the growing market for cyber insurance, carriers are trying to compete on price.  One carrier, Coalition is offering discounts if your company creates a partnership with a “white hat hacker” and establishes a bug bounty with that hacker. The hacker gets a bounty for finding vulnerabilities. Legal Tech author Rhys Dipshan details the program in the article at this link: http://tinyurl.com/ydck3nxg

Dipshan reports that “bug bounties” are becoming a popular weapon in combating cyber attacks. “Unsurprisingly” Dipshan reports, “bounty programs are becoming increasingly common in the tech and corporate world, with companies such as FacebookMicrosoft and Uber offering compensation for vulnerability disclosures. They also have caught on in the federal government as well, with the Department of Defense launching its “Hack the Pentagon” and “Hack the Air Force” programs.” Do you need a cyber bounty hunter?

Posted by Henry M. Sneath, Esq.  HoustonHarbaugh, P.C. – Pittsburgh, Pa.  https://www.hh-law.com Chair of the Intellectual Property Practice Group and Co-Chair Litigation Practice Group. Contact at: sneathhm@hh-law.com or 412-288-4013

Big IP NEWS: Defend Trade Secrets Act 2016 (DTSA) Passes Congress – President to sign

EnrolledTitle_114Posted by Henry M. Sneath, Esq. – Chair of the Intellectual Property Practice Group at Pittsburgh, Pa. law firm Picadio Sneath Miller & Norton, P.C. (PSMN® and PSMNLaw®). Mr. Sneath is also an Adjunct Professor of Law at the Duquesne University School of Law teaching Trade Secret Law, Trademark Law and the Law of Unfair Competition. He may be contacted at hsneath@psmn.com or 412-288-4013. Website www.psmn.com or www.psmn.law

The US Congress has passed the landmark Defend Trade Secrets Act of 2016 (DTSA) and it is set for the President’s signature. It will soon be law. See Link to DTSA Legislation here: https://www.congress.gov/bill/114th-congress/senate-bill/1890/text    Trade Secret law has long been the province of the States, more or less exclusively, and except for criminal protections against trade secret theft and economic espionage, there has been no Federal civil law providing a federal damages remedy for such theft.  Amended will be Crimes and Criminal Procedures – Title 18, Chapter 90, Section 1836 and the key provision is as follows:

“(1) IN GENERAL.—An owner of a trade secret that is misappropriated may bring a civil action under this subsection if the trade secret is related to a product or service used in, or intended for use in, interstate or foreign commerce.”

Congress has now added a civil remedy provision to Federal protection of Trade Secrets wherein prior Federal law only provided criminal sanctions. This has been described as a major new development in Federal IP law and will provide federal jurisdiction for Trade Secret Misappropriation cases. The law will NOT preempt nor change State laws and therefore actions will be brought in both federal and state court jurisdictions. Most states (48) have adopted a form of the Uniform Trade Secrets Act (UTSA) and actions can still be brought under those state statutes, but those statutes vary to some degree. The DTSA is very similar to the UTSA based state court statutes, but there will be differences depending on the state jurisdiction from which cases are brought or removed. DTSA will apply to any acts of trade secret misappropriation that take place AFTER the act is signed into law (not retroactive). The Statute of Limitations will be 3 years according to the actual text linked above, but some commentators have stated that it is 5 years (we will need to check to get accurate information on the SOL and will follow up).

The DTSA contains an important and somewhat controversial “Civil Seizure” provision which renders it different from most state laws and which reads:

“(i) APPLICATION.—Based on an affidavit or verified complaint satisfying the requirements of this paragraph, the court may, upon ex parte application but only in extraordinary circumstances, issue an order providing for the seizure of property necessary to prevent the propagation or dissemination of the trade secret that is the subject of the action.”

This provision is controversial because it can be ordered by a court ex-parte. By amendment, the words “but only in extraordinary circumstances” were added to attempt to mollify some critics of this provision. However, there are some strict limitations to the ex-parte injunctions and a couple of them are below:

“(ii) REQUIREMENTS FOR ISSUING ORDER.—The court may not grant an application under clause (i) unless the court finds that it clearly appears from specific facts that—

“(I) an order issued pursuant to Rule 65 of the Federal Rules of Civil Procedure or another form of equitable relief would be inadequate to achieve the purpose of this paragraph because the party to which the order would be issued would evade, avoid, or otherwise not comply with such an order;

“(II) an immediate and irreparable injury will occur if such seizure is not ordered.”

Such ex-parte injunctions must be very specific and the court must go to great lengths not to overreach or to punish through publicity an accused wrongdoer during the period of seizure. There are other typical requirements for injunctions like posting of security and careful management of the seized materials, and the accused wrongdoer has a right of action back against the claimant if the seizure turns out to be wrongful or excessive.

In an action for misappropriation, a court may order injunctive relief and may

“(B) award—

“(i) (I) damages for actual loss caused by the misappropriation of the trade secret; and

“(II) damages for any unjust enrichment caused by the misappropriation of the trade secret that is not addressed in computing damages for actual loss; or

“(ii) in lieu of damages measured by any other methods, the damages caused by the misappropriation measured by imposition of liability for a reasonable royalty for the misappropriator’s unauthorized disclosure or use of the trade secret;

“(C) if the trade secret is willfully and maliciously misappropriated, award exemplary damages in an amount not more than 2 times the amount of the damages awarded under subparagraph (B); and

“(D) if a claim of the misappropriation is made in bad faith, which may be established by circumstantial evidence, a motion to terminate an injunction is made or opposed in bad faith, or the trade secret was willfully and maliciously misappropriated, award reasonable attorney’s fees to the prevailing party.”

It is unclear as to how this bill will be enforced against foreign Trade Secret theft, or if there will even be jurisdiction under this act for such claims. We will follow up on that issue in future posts. See the Senate and House reports below which contain a substantial amount of background legislative history and commentary. Contact us for additional information. We will continue to study this new law and report to our readers.

Here is a link to the US Senate report on the bill: https://www.congress.gov/congressional-report/114th-congress/senate-report/220/1

Here is a link to the US House report on the bill: https://www.congress.gov/congressional-report/114th-congress/house-report/529/1

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Henry M. Sneath, Esquire – 412-288-4013 or hsneath@psmn.com

Follow me on Twitter @picadiosneath and on Google+: http://tinyurl.com/ktfwrah

 

 

Huge CMU v. Marvell Patent Infringement Case Settled in Pittsburgh

 

Posted by Henry M. Sneath, Esq. – Chair of the Intellectual Property Group at Picadio Sneath Miller & Norton, P.C. (PSMN® and PSMNLaw®) in Pittsburgh, Pa. He may be contacted at hsneath@psmn.com or 412-288-4013. Website www.psmn.com or www.psmn.law

marvell_chipFrom “ars technica“* publication: One of the largest patent verdict cases ever was obtained by Carnegie Mellon University (CMU) in Pittsburgh Federal District Court in 2012 in the courtroom of the Hon. Nora Barry Fischer as presiding judge. CMU won a $1.17 billion jury verdict in 2012 and the court enhanced the verdict to $1.54 Billion.  The Federal Circuit cut the win significantly, by reducing the damages and eliminating the enhanced damages award, but kept the main verdict intact. The case was just settled here in Pittsburgh for $750 Million. It will allegedly be the second largest payment ever in a technology patent case. A thorough article on the matter with good links to the case history appears at web publication ars technica*(http://tinyurl.com/zwb26wg ).

*ars technica is a copyrighted publication and the references and links herein are from the website of ars technica (© Ars Technica 1998-2016)

Henry M. Sneath

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Business Leaders Rank Cyber Risk #2 on List of Main Concerns

Posted By Henry M. Sneath, Chair of the Cybersecurity and Data Breach Prevention and Response Team at Pittsburgh, Pa. law firm Picadio Sneath Miller & Norton, P.C.  hsneath@psmn.com or 412-288-4013

Travelers Business Risk ImageTravelers Indemnity and Insurance released its annual Business Risk Index, which is a survey of the concerns of business leaders and decision makers. Not surprisingly, for 2015, Cyber Risk moved up to the number 2 concern on that list, right behind rising healthcare costs. In some industry sectors it is the number 1 concern. The Banking and Financial Services, Professional Services, and Technology sectors each ranked cyber risks as the main driver of sleepless nights.  The chart on page 3 of the survey is very instructional as to the different concerns between small, medium and large businesses. Small businesses have less concern about data breach than larger businesses, but perhaps small businesses are overlooking their vulnerability and attractiveness as targets. If they care less, they will likely protect less, and become easy targets for hackers. It should be a huge concern for all businesses in all industries as no one appears immune. If you data store or deal in Personal Identifiable Information (PII) or Personal Health Information (PHI) as part of your business, then you are a valuable target. If you have financial or credit information, or trade secrets to protect, then perhaps your competitors, foreign governments and political hackers want to look inside your data. Many insurers are now offering Cyber Risk Insurance to provide defense and indemnity against these risks. Every business should have a data breach prevention and response team of employees and outside consultants and lawyers to audit the company’s vulnerability and to set the plan for a response when a breach occurs.  See the complete Travelers Business Risk Index at: https://www.travelers.com/prepare-prevent/risk-index/business/index.aspx