Reversal of Nearly 1B Award and 20-year Injunction Illuminates the Importance of Maintaining the Confidentiality of Trade Secrets

Companies seeking to protect their trade secrets should take note of the U.S. Court of Appeals for the Fourth Circuit’s decision to vacate a $920 million dollar jury verdict and 20-year non-compete injunction awarded to the plaintiff DuPont Company in E.I. DuPont De Nemours & Co. v. Kolon Industries, Inc. No. 12-1260 (4th Cir. Apr. 3, 2014). The Fourth Circuit held that the District Court for the Eastern District of Virginia, “abused its discretion and acted arbitrarily” when it excluded evidence defendant Kolon Industries sought to introduce at trial to defend against allegations that it stole the plaintiff’s trade secrets pertaining to Kevlar, a strong para-aramid fiber used, for example, in body armor and ballistics.