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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 Georgia Code 10-1-767 From Courtlistener.com

Total Results: 3

Mays v. Southern Resources Consultants, Inc.

Court: Supreme Court of Georgia | Date Filed: 2016-06-06

Citation: 299 Ga. 216, 787 S.E.2d 209, 2016 WL 3144370, 2016 Ga. LEXIS 411

Snippet: injunction. 2 OCGA §§ 10-1-760 to 10-1-767. 3 Paragraph 6 of the Contract

Robbins v. Supermarket Equipment Sales, LLC

Court: Supreme Court of Georgia | Date Filed: 2012-02-06

Citation: 290 Ga. 462, 722 S.E.2d 55

Snippet: 10-1-761 (4) (B). v. The preemption clause of OCGA § 10-1-767 (a) was inapplicable because the drawings were

Essex Group, Inc. v. Southwire Co.

Court: Supreme Court of Georgia | Date Filed: 1998-06-29

Citation: 501 S.E.2d 501, 269 Ga. 553, 98 Fulton County D. Rep. 2210, 1998 Ga. LEXIS 719

Snippet: previous Georgia law on trade secrets, OCGA § 10-1-767(a), although prior law consistent with the Act