When an employee leaves for a competitor and takes confidential company files, the employer’s immediate reaction is often predictable: “They stole our trade secrets. We have a case.” Maybe. But a recent Northern District of California case involving electric-aircraft competitors Joby Aero and Archer Aviation illustrates why these cases can be much more complicated.
In Joby Aero, Inc. v. Archer Aviation Inc., Joby alleged that a former employee took confidential company information before joining Archer, one of Joby’s main competitors. According to Joby’s allegations, the employee downloaded dozens of files from Joby’s SharePoint repository shortly before resigning and sent some company files to a personal email account. Those facts certainly sound troubling. But they did not automatically establish a viable trade-secret claim.
One of the most important distinctions in trade-secret litigation is the difference between confidential information and a legally protected trade secret. Companies naturally consider many things confidential: customer information, pricing, internal presentations, technical documents, business plans, contacts, marketing strategies, and expansion plans. But simply labeling something “confidential” does not make it a trade secret. A company pursuing a trade-secret claim generally must be able to identify what the alleged secret actually is with sufficient specificity. In its earlier June ruling, the federal court dismissed allegations that merely described broad categories of supposed trade secrets while allowing more specifically identified information to proceed.










