Safeguarding and defining trade secrets has become increasingly difficult in the rapidly advancing digital world. Many companies now utilize social media sites such as Facebook, Twitter and Linkedin to attract and communicate with their customers. However, these companies may find themselves in a precarious position if the employee tasked with maintaining the company’s social media accounts leaves the company, particularly if the employee leaves to work for a competitor. Questions can arise regarding whether the account maintained by the employee is a personal or work account and to what extent the employer can assert an interest over the account, including the associated contacts. In many ways, social media account “friends” are becoming the new Rolodex or client list. When an employee leaves, companies are left to grapple with whether the social media account “friends” are a trade secret and whether the company can prevent the former employee from using her social media friendships in her next position for the benefit of the new employer. Courts across the country are just beginning to address these issues, with varying outcomes.
One of the first cases to address the ownership and status of a social media account was PhoneDog v. Kravitz, C11-03474 MEJ, in 2011. PhoneDog is an interactive mobile news and review web source that reviews mobile products and services and uses a variety of social media, including Twitter, Facebook and YouTube, to market and promote its services to users. The defendant, Noah Kravitz, worked for PhoneDog as a product reviewer and video blogger. In that role, PhoneDog gave Kravitz a Twitter account @PhoneDog_Noah which Kravitz used to transmit his product reviews and blogs to PhoneDog’s customers. The Twitter account had approximately 17,000 followers. When Kravitz ended his employment with PhoneDog, he refused to relinquish control of the Twitter account. Instead, he changed the handle to “@noahkravitz” and continued to use the account with its 17,000 followers while working at a competitor company.
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