Intel Wins Trade Secret Restraining Order Against Ex-Employee

A former Intel employee who allegedly copied sensitive documents can’t disclose the company’s trade secrets and confidential information, the U.S. District Court for the Western District of Texas ordered Jan. 10.

Former program manager Shahil Rais had a company laptop containing information about a highly confidential new product. After he left the company and returned the computer, Intel’s information security team determined that he had copied confidential files onto a USB device, although Rais claimed he only copied personal files, such as wedding photos and tax documents.

Rais eventually turned over a USB drive to the company, but Intel concluded that it was not the same one identified in its forensic examination. Rais cut off contact with the company, and Intel sued for misappropriation of trade secrets under federal and Texas law, and breach of Rais’s employment contract.

The court issued a temporary restraining order forbidding Rais from using or disclosing Intel’s confidential and trade secret information. The company showed a substantial likelihood that it will succeed on its misappropriation claims, the court determined.

“Intel’s evidence shows persuasively that Rais knew that the materials in question were Intel’s trade secrets, and that he took them by improper means,” the court said.

The court held off on deciding other Intel’s requests for injunctive relief.

The company wanted the court to order Rais to immediately return all confidential and trade secret Intel documents, turn over the USB drive, identify all computers to which the drive has been connected since he returned the laptop, and certify under penalty of perjury that he’s no longer in possession of any Intel documents. The court will consider those requests at a preliminary injunction hearing on Jan. 25.

Rais has not yet taken part in this litigation. The court ordered Rais to make himself available for deposition next week in Texas or California, and to respond to Intel’s discovery requests.

Intel is represented by Munger, Tolles & Olson LLP.

The case is Intel Corp. v. Rais, W.D. Tex., No. 19-00020, 1/10/19.