TIETOJA TÄSTÄ JAKSOSTA
John is joined by Michael Ng, partner at Kobre & Kim. They discuss the $604 million verdict Michael recently won in a trade secrets case in Alameda County Superior Court in California. The punitive damages phase of the trial is expected to take place in the Spring. The case centered on allegations that Phillips 66 misappropriated Propel Fuels’ trade secrets while conducting due diligence for a potential acquisition that ultimately did not proceed. Michael explains that Propel Fuels, a pioneer in renewable fuels, accused Phillips 66 of using proprietary data, including financial models, market research, and operational strategies, to replicate Propel’s business. Despite Phillips 66's claims that it had no need for Propel’s information, Michael and his team demonstrated that the trade secrets were not only accessed but directly used to launch Phillips 66’s renewable fuels business. The evidence Michael’s team presented included internal Phillips 66 documents and testimony that showed the rapid deployment of Phillips 66’s business mirroring Propel’s proprietary model. Michael reviews the strategic decisions he made that led to the verdict, including choosing to proceed in state court rather than federal court, providing a detailed pretrial trade secrets disclosure, selecting jurors with technical expertise, and proactively calling a key defense witness during Propel’s case-in-chief. He also describes how the trial team effectively explained the complex market and regulatory dynamics of renewable fuels through their clients’ testimony and expert witnesses. John and Michael also discuss Propel’s damages case, which was based on an unjust enrichment theory that emphasized the head start Phillips 66 gained by leveraging Propel’s trade secrets. Michael describes internal Phillips 66 communications stating that Propel’s information gave Phillips 66 a ten year head start on entering the renewable fuels market. Finally, John and Michael also discuss broader trends in trade secrets litigation, including the growing importance of trade secret law in emerging technologies like AI and machine learning, where trade secrets often offer more protection than patents.
Podcast Link: Law-disrupted.fm
Host: John B. Quinn
Producer: Alexis Hyde
Music and Editing by: Alexander Rossi
