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2018 Georgia Code 10-1-767 | Car Wreck Lawyer

TITLE 10 COMMERCE AND TRADE

Section 1. Selling and Other Trade Practices, 10-1-1 through 10-1-915.

ARTICLE 27 TRADE SECRETS

10-1-767. Applicability of article.

  1. Except as provided in subsection (b) of this Code section, this article shall supersede conflicting tort, restitutionary, and other laws of this state providing civil remedies for misappropriation of a trade secret.
  2. This article shall not affect:
    1. Contractual duties or remedies, whether or not based upon misappropriation of a trade secret; provided, however, that a contractual duty to maintain a trade secret or limit use of a trade secret shall not be deemed void or unenforceable solely for lack of a durational or geographical limitation on the duty;
    2. Other civil remedies that are not based upon misappropriation of a trade secret; or
    3. The definition of a trade secret contained in Code Section 16-8-13, pertaining to criminal offenses involving theft of a trade secret or criminal remedies, whether or not based upon misappropriation of a trade secret.

(Code 1981, §10-1-767, enacted by Ga. L. 1990, p. 1560, § 1; Ga. L. 1991, p. 94, § 10.)

JUDICIAL DECISIONS

Federal preemption.

- Misappropriation claims under Georgia's trade secrets law, O.C.G.A. Art. 27, Ch. 1, T. 10, were not preempted by the federal Copyright Act (17 U.S.C. § 101 et seq.) because the claims involved the additional element of a breach of the confidentiality that was owed to the software owner under the owner's license agreement and common law. CMAX/Cleveland, Inc. v. UCR, Inc., 804 F. Supp. 337 (M.D. Ga. 1992).

Georgia Trade Secrets Act, O.C.G.A. § 10-1-760 et seq., generally supersedes conflicting tort, restitutionary, and other laws of Georgia providing civil remedies for misappropriation of a trade secret. Prof'l Energy Mgmt. v. Necaise, 300 Ga. App. 223, 684 S.E.2d 374 (2009).

Preemption of common law claims.

- When a marketing company presented a packaging idea to a beverage manufacturer, requiring that the secrecy of the idea be maintained, and the manufacturer then asked another company to design a similar concept, as a result of which the marketing company sued the manufacturer, the marketing company's conversion, breach of confidential relationship and duty of good faith, unjust enrichment, and quantum meruit claims were preempted by O.C.G.A. § 10-1-767, as the subject matter of each of those claims was a trade secret. Penalty Kick Mgmt. v. Coca Cola Co., 318 F.3d 1284 (11th Cir. 2003).

In a former employer's suit against a former employee and the new employer, the former employer's conversion, misappropriation, unjust enrichment, quantum merit, and civil theft claims were dismissed, as O.C.G.A. § 10-1-767 was the exclusive remedy for misappropriation of trade secrets, and the other claims were based on the same facts that comprised the trade secret misappropriation claim. Opteum Fin. Servs., LLC v. Spain, 406 F. Supp. 2d 1378 (N.D. Ga. 2005).

In a case alleging misappropriation of confidential information and trade secrets, and breach of confidentiality agreements, a district court did not err in finding that the Georgia Trade Secrets Act of 1990, O.C.G.A. § 10-1-760 et seq., preempted the common law claims. FERCO Enters. v. Taylor Recycling Facility, LLC, F.3d (11th Cir. Aug. 29, 2008)(Unpublished).

Trial court manifestly abused the court's discretion when the court granted equitable relief to a limited liability company (LLC) because there was no finding that the drawings a company used were trade secrets as defined by the Georgia Trade Secrets Act (GTSA), O.C.G.A. § 10-1-761, and by using O.C.G.A. § 9-5-1 to provide the LLC the same relief based on the same allegations it would have received had the drawings qualified as trade secrets, the trial court undermined the exclusivity of the GTSA; the key inquiry was whether the same factual allegations of misappropriation were being used to obtain relief outside the GTSA, and since the trial court's award of general equitable relief under O.C.G.A. § 9-5-1 was based on the same conduct as the GTSA claim, i.e, the misappropriation of the drawings, such relief was preempted by O.C.G.A. § 10-1-767(a). Robbins v. Supermarket Equip. Sales, LLC, 290 Ga. 462, 722 S.E.2d 55 (2012).

Breach of contract not preempted.

- After plaintiff former employer also asserted Georgia Trade Secrets Act, O.C.G.A. § 10-1-760 et seq., claims, its common law breach of contract claim against defendant former employee was not superseded by the Act because, under O.C.G.A. § 10-1-767(b)(1), such a claim was not superseded, and the employee did not argue that there was an absence of a factual dispute as to whether the employee breached the employee's conflict of interest agreement. Diamond Power Int'l, Inc. v. Davidson, 540 F. Supp. 2d 1322 (N.D. Ga. 2007).

Customer base as trade secret.

- Bankruptcy trustee had no action against defendants for their conversion of the debtor's customer base because the remedies provided by the Georgia Trade Secrets Act, O.C.G.A. § 10-1-760 et seq., for misappropriation of a trade secret are exclusive. Kissner v. Inter-Continental Hotels Corp., 245 Bankr. 903 (M.D. Ga. 1999).

Remedies under the Georgia Trade Secrets Act, O.C.G.A. § 10-1-760 et seq., for misappropriation of a debtor's customer list were not available to a bankruptcy trustee because the debtor did not take the steps necessary to protect the debtor's customer base as a trade secret. Kissner v. Inter-Continental Hotels Corp., 245 Bankr. 903 (M.D. Ga. 1999).

Breach of fiduciary duty claim not preempted.

- Trial court erred in dismissing an employer's claims for breach of fiduciary duty, solicitation of customers, appropriation of tangible property, and breach of a nondisclosure agreement as preempted by the Georgia Trade Secrets Act, O.C.G.A. § 10-1-760 et seq., because these claims alleged conduct that did come within the Act. Prof'l Energy Mgmt. v. Necaise, 300 Ga. App. 223, 684 S.E.2d 374 (2009).

Cited in Servicetrends, Inc. v. Siemens Medical Sys., 870 F. Supp. 1042 (N.D. Ga. 1994); Equifax Servs., Inc. v. Examination Mgt. Servs., Inc., 216 Ga. App. 35, 453 S.E.2d 488 (1995).

Cases Citing O.C.G.A. § 10-1-767

Total Results: 3  |  Sort by: Relevance  |  Newest First

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Essex Grp., Inc. v. Southwire Co., 501 S.E.2d 501 (Ga. 1998).

Cited 33 times | Published | Supreme Court of Georgia | Jun 29, 1998 | 269 Ga. 553, 98 Fulton County D. Rep. 2210

...sons who can obtain economic value from its disclosure or use; and (B) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. OCGA § 10-1-761(4). The Act supersedes previous Georgia law on trade secrets, OCGA § 10-1-767(a), although prior law consistent with the Act remains viable precedent....
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Robbins v. Supermarket Equip. Sales, LLC, 290 Ga. 462 (Ga. 2012).

Cited 16 times | Published | Supreme Court of Georgia | Feb 6, 2012 | 722 S.E.2d 55

...The drawings were misappropriated. *464iv. The drawings were not “trade secrets” under the GTSA because SES failed to take reasonable efforts to maintain the secrecy of the drawings as required by OCGA § 10-1-761 (4) (B). v. The preemption clause of OCGA § 10-1-767 (a) was inapplicable because the drawings were not trade secrets. Although SES did not file a claim or request any relief outside the scope of the GTSA, the trial court concluded SES was entitled to general equitable relief under OCGA §...
...Therefore, the trial court did not err when it declined to deny SES’s action for lack of standing. 2. Appellants contend that the GTSA was appellee’s exclusive remedy and that the trial court erred when it granted SES general equitable relief in spite of the GTSA’s preemption provision (OCGA § 10-1-767 (a)2)....
...Ink Wizard Tattoos is irrelevant to the case at bar, and the trial court abused its discretion when it relied on the case in support of its grant of equitable relief to SES. (b) The GTSA supersedes all conflicting laws providing restitution or civil remedies for the misappropriation of trade secrets. OCGA § 10-1-767 (a)....
...For the GTSA to maintain its exclusiveness, a plaintiff cannot be allowed to plead a lesser and alternate theory of restitution simply because the information does not qualify as a trade secret under the act. See id. Indeed, the only *466exceptions to the exclusivity of the GTSA are contained in OCGA § 10-1-767 (b)3 and that provision does not except from the scope of the GTSA claims of equitable relief under OCGA § 9-5-1 for the misappropriation of proprietary or confidential information....
...ing used to obtain relief outside the GTSA. Since the trial court’s award of general equitable relief under OCGA § 9-5-1 was based on the same conduct as the GTSA claim, i.e, the misappropriation of the drawings, such relief was preempted by OCGA § 10-1-767 (a)....
...Smith. Martin L. Fierman, for Supermarket Equipment Sales, LLC. Judgment affirmed in part and reversed in part. All the Justices concur. Yahoo is an internet service provider which allows individuals to maintain personal e-mail accounts. OCGA § 10-1-767 (a) states: “Except as provided in subsection (b) of this Code section, this article shall supersede conflicting tort, restitutionary, and other laws of this state *465providing civil remedies for misappropriation of a trade secret.” OCGA § 10-1-767 (b) states as follows: This article shall not affect: (1) Contractual duties or remedies, whether or not based upon misappropriation of a trade secret; provided, however, that a contractual duty to maintain a trade secret or limit use of...
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Mays v. S. Resources Consultants, Inc., 299 Ga. 216 (Ga. 2016).

Published | Supreme Court of Georgia | Jun 6, 2016 | 787 S.E.2d 209

...he Georgia Department of Behavioral 1 The superior court titled the order at issue as a temporary restraining order; however, in substance it is in the nature of an interlocutory injunction. 2 OCGA §§ 10-1-760 to 10-1-767. Health and Developmental Disabilities (“DBHDD”) and the Georgia Department of Community Health (“DCH”) to, inter alia, operate group homes and provide care and oversight for Medicaid-funded individuals with developmental disabilities....