Judge Thayer Fremont-Smith recently decided in RIS Paper Co., Inc., et al. v. Wave Graphics, Inc., et al. that the principal of a dissolved commercial printing company did not misappropriate trade secrets when he transferred a customer list from the dissolved company to his new employer.

The judge held that the value of the list involved consisted of the personal relationships the principal and his sales force had cultivated with those customers, and that goodwill was not an asset of the dissolved company. The judge held that the dissolved company had taken no steps to protect its goodwill, such as by labeling the information confidential, locking it up, or requiring employees to sign confidentiality agreements. Further, the judge held that it was normal in the printing industry for a principal to depart with a list of customers he had serviced and developed a relationship with.