A trade secret is a process or formula kept unregistered and secured under lock and key that gives your company a competitive advantage. Each state has its own laws that prohibit the stealing and disclosure of a company’s trade secret. When a trade secret is stolen or disclosed it is called trade secret infringement. If you prove that someone has infringed or is threatening to infringe his confidentiality agreement, you can seek injunctive relief to stop the person and damages for any harm done to your company by revelation of the trade secret.
Proving Your Trade Secret Infringement Case
In order to prove and prevail in your trade secret infringement case, most states require that you prove two things. First, you must prove that the information you are claiming is confidential actually provides your company with a competitive edge. This is an essential element, because if the information is not really a trade secret, it will not be protected by the courts. Next, you must prove that the information has been maintained in secrecy until now. Things the courts look for to determine whether it was an actual secret include:
Ideally, you will prove your case and stop the infringer before he actually releases the information. In these cases, injunctive relief is available to prevent the disclosure of trade secret information under the laws of every state. While such action involves retaining an attorney and filing a lawsuit, it is often necessary because once the trade secret is made public, it is much more difficult, if not impossible, to restore the information to trade secret status.
In many situations, no amount of money damages can provide just compensation for the value of a trade secret, and very often the person who releases your trade secret to the world will not have sufficient assets to pay a judgment against him for the damage you suffer. If the infringer has released the information to a competitor who knew that it was your trade secret and that the employee had a confidentiality agreement, you may be able to recover damages from the competitor as well as the infringer.
Getting Help
Trade secret law is a very complex area with little statutory guidance. If someone is threatening to infringe on your trade secret, do not attempt to stop him yourself, as doing so may delay the process and damage your company further. Instead, contact an attorney immediately for a consultation. Most attorneys will file your injunction the same day you hire them to ensure the trade secret is kept safe.