Michaels Stores Must Defend Trade Secrets Suit Over Paint Kits

Michaels Stores Inc. can’t escape a trade secrets, trademark infringement, and breach of contract lawsuit alleging it met with a paint kit company and then used its proprietary information to start selling similar kits shortly afterwards.

ATC Media LLC sufficiently described its confidential information and isn’t estopped from bringing a trademark claim because it abandoned the class of goods covering some of its kits during United States Patent and Trademark Office proceedings, the US District Court for the Northern District of Texas said Tuesday.

Masterpiece creates, markets, and sells premium paint-by-number kits under the trademark and tradename Masterpiece by Numbers, ...