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Magic Leap, Inc. v. Xu
United States District Court for the Northern District of California
2020 U.S. Dist. LEXIS 106093 (2020)
In 2015, Chi Xu (defendant) was employed by Magic Leap, Inc. (plaintiff), a spatial-computing-technology company. Xu was required to sign a confidentiality agreement that contained broad categories of confidential information that Xu was prohibited from misusing during and after his employment. In 2016, Xu terminated his employment, and in 2017, Xu formed Hangzhou Tairuo Technology Company (Nreal) (defendant). Soon after, Nreal released a prototype product similar to Magic Leap’s confidential designs. Magic Leap filed suit, alleging that Xu had breached the confidentiality agreement. However, Magic Leap’s complaint did not explain how Xu had breached the agreement or include the specific confidential information that Xu allegedly had used. Xu and Nreal filed a motion to dismiss, arguing that the confidentiality agreement was an unenforceable restraint on trade pursuant to California law because the provisions of the agreement were not sufficiently specific to identify the trade secrets Magic Leap intended to protect. Xu and Nreal further argued that Magic Leap had failed to adequately plead that Xu had breached the agreement.
Rule of Law
Holding and Reasoning (Koh, J.)
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