Pinkerton Tobacco Co., LP v. Kretek International, Inc.

I. BACKGROUND

Pinkerton Tobacco Co., LP, Swedish Match North America, LLC, and NYZ AB (collectively “Plaintiffs”) filed a complaint against Kretek International, Inc. and DRYFT Sciences, LLC (collectively “Defendants”) alleging violations of the Defend Trade Secrets Act and Kentucky Trade Secrets Act. [DN 1]. According to the Complaint, Plaintiffs’ parent company Swedish Match North Europe purchased numerous trade secrets between 2013 and 2016 from nonparty TillCe AB. [DN 1 ¶¶ 21– 25]. The trade secrets relate to “the composition and method of manufacturing nicotine pouch products,” and Swedish Match North Europe used the trade secrets to develop a smokeless tobacco product called “ZYN.” [Id. at ¶¶ 7, 17]. Plaintiffs are licensed to use the trade secrets for ZYN production in North America. [See id. at ¶¶ 18, 21]. Defendant Kretek distributes DRYFT, a competing smokeless tobacco product produced by TillCe AB. [Id. at ¶¶ 7–8, 30]. Before 2019, DRYFT was produced in Sweden. [Id. at ¶ 30]. But in September 2019, Kretek announced it would begin manufacturing DRYFT in the United States through a newly formed subsidiary, DRYFT Sciences. [Id. at ¶ 31]. …