Also known as: actual misappropriation · threatened misappropriation · misappropriation
Written by attorneys · grounded in primary & secondary sources — see below
A ground for injunctive or disciplinary relief that authorizes courts or tribunals to prohibit actual or threatened misappropriation of property, identity, funds, or other protected interests.
Antonio Alvarado learns that a beverage company plans to launch a marketing campaign using his name and life story without permission. He seeks an injunction to stop the campaign before it begins. The court treats the planned campaign as threatened misappropriation of his identity and issues injunctive relief.
A lawyer learns from a client that another attorney has misappropriated client funds and placed them in a personal account. The client asks that no report be made. The lawyer must still report the actual misappropriation to disciplinary authorities because the duty to report overrides the client's preference.
Select any source to read its text and confirm it supports the definition.
An attorney transfers client trust funds into a personal investment account with the stated intent to repay the money later. No client suffers a loss and the attorney has an exemplary record. The knowing misappropriation still triggers disbarment because the conduct undermines public confidence in the profession.
A competing news agency copies fresh stories from bulletin boards and early editions of member newspapers and transmits the facts to its own western subscribers. The original service seeks an injunction. The court recognizes the copying as misappropriation of hot news that retains commercial value and grants relief.
A manufacturer produces boat hulls by copying the design of a competitor's unpatented hulls using a direct molding process. The original designer sues for misappropriation of its development efforts. The court holds that federal patent law preempts the state misappropriation claim.
The estate of a deceased actor sues a film studio for using the actor's likeness and character in new motion pictures without authorization. The court examines whether the right to exploit one's name or likeness survives death and passes to heirs as a property interest subject to misappropriation claims.
An injunction may issue upon a showing of threatened misappropriation, including when an employee who possesses trade secrets is likely to disclose them to a new employer. Courts may apply the inevitable disclosure doctrine even without a noncompete agreement or physical documents in the employee's possession.
Supporting sources
No. The doctrine can be invoked even if the former employee is not in possession of confidential documents and even in the absence of a noncompete agreement.
Supporting sources
The purpose is to prevent the inevitable disclosure of trade secrets to a competitor and thereby protect the value of the information that is not publicly available.
Supporting sources
…has the characteristics of quasi-property as between competitors, sufficient to support an action for unfair competition by misappropriation. 2. The injunction against INS’s appropriation of AP’s fresh news is affirmed. 3. INS may not use the AP’s news as the source of its own news while the news retains commercial value,…