Starkey Laboratories, Inc. v. Saykeo
0:25-cv-02737
D. MinnesotaJul 7, 2025Background
- Starkey Laboratories, a leading hearing aid manufacturer, employed Phetsamone Saykeo for over 25 years, during which he had significant access to Starkey's confidential and trade secret information.
- Saykeo signed a Confidentiality and Noncompete Agreement in 2005, prohibiting him from disclosing Starkey’s confidential information and from working for hearing aid competitors for 90 days post-employment.
- Starkey discovered that, shortly before his planned departure, Saykeo downloaded and printed a confidential document (Windchill Document 0023811) and intended to join a start-up competitor, Chromatic, Inc.
- Saykeo failed to satisfactorily return the confidential document or the USB drive, producing instead a bag of unrelated shredded papers and admitting to downloading the document.
- Starkey filed for a Temporary Restraining Order (TRO) seeking to enforce the confidentiality, prevent further misappropriation, and enforce the noncompete provision. Saykeo, unrepresented, did not contest and agreed to the TRO.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of Trade Secret | Windchill Document 0023811 contains protectable trade secrets per DTSA and contract | No substantive argument; admitted document | Court found likely existence of protectable trade secret |
| Misappropriation of Trade Secret | Saykeo improperly downloaded, retained, and failed to return trade secrets | No opposition presented | Sufficient evidence of misappropriation |
| Breach of Noncompete and Confidentiality | Saykeo violated noncompete by joining Chromatic and failed to protect/return information | No opposition; questioned terms in meeting | Starkey likely to succeed on breach of contract claim |
| Irreparable Harm | Unauthorized disclosure/use would cause competitive & reputational harm | No opposition | Threat of irreparable harm to Starkey established |
Key Cases Cited
- Kelley v. First Westroads Bank, 840 F.2d 554 (standard for TRO to preserve status quo)
- Watkins Inc. v. Lewis, 346 F.3d 841 (burden on movant for TRO/preliminary injunction)
- United Healthcare Ins. Co. v. AdvancePCS, 316 F.3d 737 (likelihood of success on any claim is sufficient for TRO)
- Gen. Motors Corp. v. Harry Brown's, LLC, 563 F.3d 312 (irreparable harm occurs where damages are inadequate)
- Mod. Controls, Inc. v. Andreadakis, 578 F.2d 1264 (irreparable harm from violation of confidentiality and noncompete)
- Carlsen v. GameStop, Inc., 833 F.3d 903 (elements of breach of contract under Minnesota law)
- Kallok v. Medtronic, Inc., 573 N.W.2d 356 (enforceability of noncompete for business interests)
