Indiana Federal Court Holds That A Confidentiality Agreement Without Any Limitations Violates Indiana Law And That A Suit For Misappropriation Cannot Be Brought By A Plaintiff Who Uses A Trade Secret With Permission But Does Not Own It

Shortly before leaving the employ of Swanel Beverage, Inc. (a manufacturer of soft drinks, juice products, and energy beverages), Bodemer — Swanel’s national sales and marketing manager who “was involved with almost every facet of Swanel’s business” — incorporated Innovative Beverage, Inc.  Right after Bodemer resigned from Swanel, Innovative commenced operations as a competitor.  Then, he and Innovative filed a declaratory judgment action in the Southern District of Indiana alleging that his confidentiality and non-competition agreements with Swanel were unenforceable and were not violated.  Swanel, of course, counterclaimed for breach of contract and violation of the Indiana Uniform Trade Secrets Act.  Following discovery, Bodemer moved for summary judgment with respect to both his complaint and Swanel’s counterclaim.  Federal Judge James Moody’s multi-faceted decision on Bodemer’s motion included the rulings mentioned in the title to this blog and others.  Bodemer v. Swanel Beverage, Inc., Case No. 2:09 CV 90 (S.D. Ind., July 31, 2012).

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