Insulet Corp. v. Eoflow, Co. Ltd.

Court of Appeals for the Federal Circuit·Decided May 28, 2026·No. 25-1807·Published

Opinion

United States Court of Appeals for the Federal Circuit

INSULET CORP., Plaintiff-Appellee

v.

EOFLOW, CO. LTD., EOFLOW, INC., JESSE J. KIM, Defendants-Appellants

2025-1807

Appeal from the United States District Court for the District of Massachusetts in No. 1:23-cv-11780-FDS, Judge F. Dennis Saylor, IV.

Decided: May 28, 2026

WILLIAM M. JAY, Goodwin Procter LLP, Washington, DC, argued for plaintiff-appellee. Also represented by MATTHEW GINTHER; ROBERT CARROLL, WILLIAM EVANS, ROBERT FREDERICKSON, III, ALEXANDRA LU, Boston, MA; ALEXANDRA D. VALENTI, New York, NY.

ELIZABETH PRELOGAR, Cooley LLP, Washington, DC, argued for defendants-appellants. Also represented by ELIZABETH M. FLANAGAN, Minneapolis, MN; LOWELL D. MEAD, Palo Alto, CA.

2 INSULET CORP. v. EOFLOW, CO. LTD.

Before DYK, PROST, and REYNA, Circuit Judges. Opinion for the Court filed by Circuit Judge DYK. Dissenting opinion filed by Circuit Judge PROST.

DYK, Circuit Judge.

Insulet Corporation (“Insulet”) sued EOFlow, Co. Ltd., EOFlow, Inc., and its chief executive officer and major stockholder Jesse Kim (collectively, “EOFlow” unless otherwise noted) for trade secret misappropriation under the Defend Trade Secrets Act (“DTSA”) and for patent infringement . The district court bifurcated Insulet’s trade secret misappropriation claim from the patent claims.

EOFlow argued that the statute of limitations had expired for Insulet’s trade secret misappropriation claim. The district court denied both parties’ summary judgment motions on the limitations issue. The case proceeded to a jury trial on the DTSA claim. The jury found that EOFlow misappropriated four Insulet trade secrets and that Insulet ’s claim was not time-barred for any of the misappropriated trade secrets and awarded damages. The district court denied EOFlow’s posttrial judgment as a matter of law (“JMOL”) motion; entered judgment awarding Insulet damages; held both EOFlow entities and Mr. Kim jointly and severally liable for the damages; and issued a permanent injunction. After trial, the patent claims were dismissed without prejudice. EOFlow appeals.

We conclude that we have jurisdiction because the patent claims were effectively dismissed with prejudice. On the merits, we determine that EOFlow was entitled to JMOL on Insulet’s DTSA claim because the statute of limitations had expired before Insulet brought suit. We reverse .

INSULET CORP. v. EOFLOW, CO. LTD. 3

BACKGROUND

I

The following summary is based on the undisputed testimony at trial, unless otherwise noted. Insulet is a medical -device manufacturer that makes an adhesive, wearable insulin patch pump called the Omnipod®, which was first marketed in 2005. After its initial launch, Insulet continued to work on next-generation versions of the Omnipod, including the Omnipod Eros. Insulet marketed the Omnipod Eros beginning in 2011.

EOFlow also developed an adhesive, wearable insulin patch pump called the EOPatch®. EOFlow never marketed the first-generation EOPatch, and this patch pump was not alleged to have been developed through trade secret misappropriation. However, Insulet alleged trade secret misappropriation, beginning in 2018, in connection with EOFlow’s efforts to develop a second-generation patch pump, known as the EOPatch 2. This pump was later marketed in Europe and South Korea.

EOFlow’s misappropriation was alleged to have occurred when EOFlow hired several former Insulet employees to help develop and commercialize the EOPatch 2. These former employees had signed confidentiality and non-disclosure agreements at Insulet. One of the former Insulet employees, Steve DiIanni, the Director of Mechanical Engineering at Insulet, was allegedly “entrusted with details of every aspect of the research and development efforts to create the world’s first insulin patch pump,” J.A. 321 ¶ 40, and possessed “detailed technical information about Insulet’s Omnipod product, including but not limited to product specifications, material compositions, coating materials, . . . operational software requirements and details, dimensional tolerances, . . . and other product and manufacturing details.” J.A. 322 ¶ 41.

4 INSULET CORP. v. EOFLOW, CO. LTD.

Mr. DiIanni provided assistance to EOFlow in developing a second-generation patch pump. Between March and May 2018, Mr. DiIanni shared computer-aided design (CAD) files for the Omnipod Eros, information about the design and manufacture of the Omnipod’s soft cannula, and information regarding the Omnipod’s occlusion-detection algorithm with EOFlow. Insulet alleges that these disclosures , among others, constituted trade secret misappropriation. 1

II

On August 3, 2023, Insulet brought suit against EOFlow in the District of Massachusetts asserting trade secret misappropriation under the DTSA and patent infringement . Insulet moved for a preliminary injunction against EOFlow on the DTSA claim. The district court granted the preliminary injunction and bifurcated the DTSA claim and patent claims. We reversed the district court’s grant of preliminary injunction. Insulet Corp. v. EOFlow, Co. (“Insulet I”), 104 F.4th 873 (Fed. Cir. June 17, 2024). We concluded that the district court “fail[ed] to address the statute of limitations,” failed to conduct “a tailored analysis as to what specific information actually constituted a trade secret,” and “abused its discretion in reaching its findings as to irreparable harm and the public interest.” Insulet I, 104 F.4th at 883.

On remand, EOFlow and Insulet both moved for summary judgment on the statute of limitations issue. Under the DTSA, the statute of limitations expires “3 years after

1 Insulet also alleged that former Insulet employees Luis Malave and Ian Welsford misappropriated Insulet’s trade secrets in the development of the EOPatch 2. As each of these alleged disclosures occurred after Mr. DiIanni’s initial disclosures to EOFlow, none is relevant to the statute of limitations issue.

INSULET CORP. v. EOFLOW, CO. LTD. 5

the date on which the misappropriation with respect to which the action would relate is discovered or by the exercise of reasonable diligence should have been discovered. For purposes of this subsection, a continuing misappropriation constitutes a single claim of misappropriation.” 18 U.S.C. § 1836(d). EOFlow contended that the DTSA should be interpreted to incorporate an inquiry-notice standard and that Insulet’s claim was time-barred as a matter of law under that standard. Insulet, in turn, argued that the Supreme Court’s decision in Merck & Co. v. Reynolds , 559 U.S. 633 (2010), had rejected an inquiry-notice standard for a similar statute; that the Merck discovery standard applied; and that its claim was not time-barred as a matter of law under that standard. The district court agreed with Insulet that the Merck standard applied, but concluded there were “material factual disputes concerning the time at which a reasonably diligent company should have discovered the alleged misappropriation” under the Merck standard and denied both summary judgment motions . J.A. 23. At trial, both parties presented evidence on the statute of limitations issue.

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