Schalk v. State

823 S.W.2d 633, 1991 WL 194072
CourtCourt of Criminal Appeals of Texas
DecidedOctober 2, 1991
Docket665-89, 666-89
StatusPublished
Cited by12 cases

This text of 823 S.W.2d 633 (Schalk v. State) is published on Counsel Stack Legal Research, covering Court of Criminal Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schalk v. State, 823 S.W.2d 633, 1991 WL 194072 (Tex. 1991).

Opinion

823 S.W.2d 633 (1991)

Thomas Barton SCHALK and Robert Gary Leonard, Appellants,
v.
The STATE of Texas.

Nos. 665-89, 666-89.

Court of Criminal Appeals of Texas, En Banc.

October 2, 1991.
Rehearing Denied December 4, 1991.

*634 Gerald A. Banks, Michael P. Carnes, John H. Hagler, Dallas, for appellants.

John Vance, Dist. Atty., and Kathi Alyce Drew, Anne B. Wetherholt, Ted Steinke & Jane E. Jackson, Asst. Dist. Attys., Dallas, Robert Huttash, State's Atty., Austin, for the State.

Before the court en banc.

APPELLANTS' PETITION FOR DISCRETIONARY REVIEW

MILLER, Judge.

Appellants were convicted of theft of trade secrets. V.T.C.A. Penal Code § 31.-05. They pled not guilty to the indictments [1] and were afforded a joint trial on the merits. A jury found both appellants guilty of the offenses as charged and assessed punishment at two years confinement in the Texas Department of Corrections [2] and a $5,000 fine for each. Appellants raised six points of error in the court of appeals, alleging the evidence was insufficient to establish trade secret status and mental culpability for the act of theft thereof, additional points concerning the authorization of the search, and an allegation of jury misconduct. The court of appeals affirmed appellants' convictions in separate published opinions. Schalk v. State, 767 S.W.2d 441 (Tex.App.—Dallas 1988); Leonard v. State, 767 S.W.2d 171 (Tex.App.—Dallas 1988). Appellants petitioned this Court on six grounds for review, two of which we granted, to-wit: 1) "The court of appeals erred in holding that the evidence is sufficient to show that the so-called computer programs that were alleged in the indictment were trade secrets"; and 2) "The court of appeals erred in holding that the search warrant sufficiently described the magnetic tapes that were seized and that the magnetic tapes were not seized pursuant to a general exploratory search."[3] We will affirm the court of appeals.

*635 A brief recitation of the facts is necessary to set the background for the alleged commission of the instant offense. Appellants Schalk and Leonard are former employees of Texas Instruments (hereafter TI). Both men have doctoral degrees and specialized in the area of speech research at TI. Schalk resigned his position with TI in April 1983 to join a newly developed company, Voice Control Systems (hereafter VCS). In February 1985, Leonard resigned from TI and joined VCS. Several TI employees eventually joined the ranks of VCS. Speech research was the main thrust of the research and development performed by VCS. In fact, VCS was a competitor of TI in this field.

In April 1985 Sam Kuzbary, then employed with VCS and a former TI employee, noticed some information which he believed to be proprietary to TI stored in the memory of the computer he was using at VCS. Kuzbary contacted TI and agreed to serve as an "informant" for them. He then searched the premises of VCS and photographed materials which he recognized from his employment with TI. A TI internal investigation revealed that a few hours prior to Schalk's and Leonard's departures from TI, each appellant, utilizing TI computers, copied the entire contents of the directories respectively assigned to them. This information included computer programs which TI claimed to be its trade secrets.

Officials of TI then contacted the Dallas District Attorney's office. A search of the premises of VCS resulted in the seizure of computer tapes containing the alleged TI trade secret programs from appellants' offices. Appellants were arrested and the following indictments were returned:

THOMAS BARTON SCHALK, hereinafter styled Defendant, on or about the 27th day of April in the year of our Lord One Thousand Nine Hundred and Eighty-Three in the County and State aforesaid, did unlawfully, then and there, knowingly make a copy of an article representing trade secrets of Texas Instruments Incorporated, a corporation, to-wit: a computer disk on which the following computer programs were stored:

LPCSPEAK1.FOR created May 3,1981 at 1:13 p.m.

LPCSPEAK2.FOR created January 10, 1982 at 5:04 p.m.

LPCSPEAK3.FOR created October 18, 1982 at 6:51 a.m.

LPCSPEAK4.FOR created October 27, 1982 at 1:56 p.m.

RTSSPEAK3.FOR created October 18, 1982 at 6:52 a.m.

and said Defendant copied said computer programs, which were the trade secrets of Texas Instruments Incorporated, from said computer disk onto a magnetic tape without the effective consent of Texas Instruments Incorporated, the owner of said trade secrets ...
ROBERT GARY LEONARD, hereinafter styled Defendant, on or about the 18th day of February in the year of our Lord One Thousand Nine Hundred and Eighty-Five in the County and State aforesaid, did unlawfully, then and there, knowingly make a copy of an article representing trade secrets of Texas Instruments Incorporated, a corporation, to-wit: a computer disk on which the following computer programs were stored:

V2REC 9.FOR created July 28, 1982 at 1:40 a.m.

V2REC 9LN.FOR created October 7, 1982 at 1:08 a.m.

V3REC 9.FOR created November 16, 1982 at 3:53 a.m.

V3REC 9.FOR created October 8, 1982 at 8:33 a.m.

V4REC 9.FOR created January 13, 1983 at 2:32 p.m.

and said Defendant copied said computer programs, which were the trade secrets of Texas Instruments Incorporated, from said computer disk onto a magnetic tape without the effective consent of Texas Instruments Incorporated, the owner of said trade secrets ...

To reiterate, we granted review to consider, first, whether the evidence was sufficient to establish that the computer programs named in the indictments were trade secrets, and second, to determine whether the items listed in the search warrant were *636 sufficiently described so as to preclude a general exploratory search. We will first address the trade secrets issue and then examine the search warrant to determine the specificity of its scope.

Trade Secrets

We begin our discussion with the nature of the alleged trade secrets in the instant case, viz computer programs. Texas trade secret law has its origins in the civil law arena. See BPI Systems, Inc. v. Leith, 532 F.Supp. 208 (W.D.Tex.1981) (Fifth Circuit case applying Texas law utilizing the trade secrets definition from the Restatement of Torts, citing Hyde Corp. v. Huffines, 158 Tex. 566, 314 S.W.2d 763 (1958)).[4] In BPI, the subject of the trade secret litigation was a computer software program, which the court found met the trade secrets definition under Texas civil law.

Prior to the enactment of § 31.05, theft of trade secrets was subject to criminal charges under theft of property statutes. See Hancock v. State, 402 S.W.2d 906, 908 (Tex.Cr.App. 1966) (cites to theft statutes defining "property"). This Court's decision in Hancock, while not dispositive of the instant situation, does recognize computer programs as "property" subject to criminal jurisdiction.

Few cases have been decided under Penal Code § 31.05. See Falcone v. State,

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823 S.W.2d 633, 1991 WL 194072, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schalk-v-state-texcrimapp-1991.