Product Liability -- 2006



Mann v. Cooper Tire Co.   (New York Court of Appeals)

Trade secret protection for product ingredients and formulas

The NAM joined with the Rubber Manufacturers Association 7/3/06 in an amicus brief in an appellate court in New York to protect trade secrets from disclosure to the plaintiffs in a case involving a tire failure. The lower court had agreed with Cooper Tire that its ingredients and formulas for tire manufacturing are critical trade secrets, but an appeals court reversed. Our brief argues that this reversal fails to recognize that the plaintiff must show that the secrets are indispensable to his case.

Trial lawyers have been aggressively seeking tire formulas recently, and the formulas have been obtained through many years of research and development, the disclosure of which would provide a significant competitive benefit to foreign competitors. It could also lead to higher prices and lost jobs.

This case is an important bellwether for how New York will treat trade secrets in a variety of industries that face product liability claims.

The appeal was denied on September 7, 2006. An appeal to the New York Court of Appeals, that state's highest court, was denied in December. The NAM and the Rubber Manufacturers of America filed an amicus brief in support of the appeal on Sept. 14, 2006.