Gould, Inc. v. Mitsui Mining & Smelting Co.

Abstract

In the course of litigation against an ex-employee, Gould, Inc. (Gould) allegedly learned that its proprietary technical data had been improperly supplied to Mitsui Mining & Smelting Co., Ltd. (Mitsui) and Miyakoshi Machine Tools Co., Ltd. (Miyakoshi), which then used those trade secrets in a joint venture with Pechiney Ugine Kuhlmann, a French state-owned company, and its wholly owned subsidiary, Trefimetaux (Pechiney/Trefimetaux). Gould filed a civil lawsuit against Pechiney/Trefimetaux, together with Mitsui and Miyakoshi, in U.S. district court, alleging violations of the Racketeer Influenced and Corrupt Organizations provisions of the Organized Crime Control Act of 1970 (18 U.S.C. §1961-1968 (1988)) (RICO). Gould’s complaint also included claims of unfair competition and unjust enrichment based upon the defendants’ alleged misappropriation of trade secrets. On the motion of Pechiney/Trefimetaux, the district court held that the civil RICO claim should be dismissed because, as “foreign states” under the Foreign Sovereign Immunities Act of 1976 (28 U.S.C. §1330, 1602-1611 (1988)) (FSIA), Pechiney and Trefimetaux were immune from criminal indictment for the acts alleged to have formed the basis for the RICO violation.