Chicago Lock Co., a Corporation v. Morris v. Fanberg and Victor Fanberg, Co-Partners, D/B/A A-Advanced Locksmith

The Chicago Lock Company (“the Company”), a manufacturer of “tubular” locks, brought suit against Morris and Victor Fan-berg, locksmiths and publishers of specialized trade books, to enjoin the unauthorized dissemination of key codes for the Company’s “Ace” line of tubular locks. The District Court granted summary judgment in favor of the Fanbergs as to the Company’s federal claims of trademark infringement and unfair competition, but held trial on the common law claim of unfair competition under former Cal.Civ.Code § 3369.

The court concluded that the key codes for the Company’s tubular locks were improperly acquired trade secrets and enjoined distribution of the Fanbergs’ compilation of those codes. For the reasons set forth in this opinion, we reverse the District Court and order that judgment be entered in favor of the Fanbergs.

THE FACTS

Since 1933 the Chicago Lock Company, a manufacturer of various types of locks, has sold a tubular lock, marketed under the registered trademark “Ace,” which provides greater security than other lock designs. Tubular Ace locks, millions of which have been sold, are frequently used on vending and bill changing machines and in other maximum…