Olaplex Dyeing to Protect its Intellectual Property
Client Alert | 1 min read | 08.15.19
On August 12, 2019, a jury in Delaware federal court found L’Oreal USA Inc. liable for misappropriating Olaplex LLC’s trade secrets, infringing two patents relating to hair-coloring, and breaching a nondisclosure agreement between the two parties. The jury awarded $91.3 million to Olaplex. Olaplex’s victory demonstrates the importance of entering into nondisclosure agreements before disclosing potential intellectual property to a competitor – especially a large one.
This suit stems from a meeting in 2015 between L’Oreal and Olaplex to discuss a potential acquisition or licensing deal. Olaplex alleged that after the parties met, L’Oreal exploited its trade secrets and created “three knockoff versions” of products discussed during the meeting. At trial, the jury found that L’Oreal stole Olaplex’s trade secrets in violation of the nondisclosure agreement.
The jury found that L’Oreal willfully infringed both patents, leaving open the possibility of an award of increased damages.
L’Oreal hopes to remove this stain upon its reputation on appeal.
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U.S. Department of Commerce Partially Relaxes Export Controls on Syria
On August 28, the U.S. Department of Commerce Bureau of Industry and Security (BIS) published a final rule that modifies the Export Administration Regulations (EAR) to reduce the number of export control restrictions on Syria, in alignment with Executive Order 14312, Providing For The Revocation of Syria Sanctions. The key adjustments made by this rule include the addition of new or expanded license exception eligibility for exports and reexports to Syria (which significantly broadens the number of items that can be exported or reexported to Syria) and the adoption of more permissive license review policies for exports and reexports to Syria.
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