TRADE SECRETS
AND MISAPPROPRIATION
Attorneys in Dallas, Texas
A trade-secret case must allege that some valuable business information has been kept secret, such secret is not generally known, and defendant has wrongfully used that secret.
WHAT ARE TRADE SECRETS AND HOW TO PROTECTED THEM?
What Is A Trade Secret?
According to the United States Patent and Trademark Office, a trade secret is information that:
- has either actual or potential independent economic value by virtue of not being generally known;
- has value to others who cannot legitimately obtain the information; and
- is subject to reasonable efforts to maintain its secrecy.
There is no time limit to which a trade secret can be protected, however, all three elements must be present to exist as a trade secret.
What Is The Texas Uniform Trade Secrets Act (TUTSA)?
The Texas Uniform Texas Trade Secrets Act (TUTSA) is law that protects your trade secret from misappropriation. Section 134A.001 of the Texas Civil Practice and Remedies Code defines a trade secret as:
“All forms and types of information, including business, scientific, technical, economic, or engineering information, and any formula, design, prototype, pattern, plan, compilation, program device, program, code, device, method, technique, process, procedure, financial data, or list of actual or potential customers or suppliers, whether tangible or intangible and whether or how stored, compiled, or memorialized physically, electronically, graphically, photographically, or in writing if:
(A) the owner of the trade secret has taken reasonable measures under the circumstances to keep the information secret; and
(B) the information derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, another person who can obtain economic value from the disclosure or use of the information. (7) "Willful and malicious misappropriation" means intentional misappropriation resulting from the conscious disregard of the rights of the owner of the trade secret.”
Generally, misappropriation of a trade secret occurs if i) a person acquires
a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or ii) a person disclosures
or uses a trade secret of another without express or implied consent by a person who then used improper means to acquire knowledge of the trade secret and knew at the time of disclosure or use, knew or had reason to know that the person's knowledge of the trade secret was acquired through improper means.
Remedies For Misappropriating A Trade Secret
Injunctive Relief For Trade Secret Misappropriation
Whether actual or threatened, the court can prohibit a person from disclosing or using the knowledge of the trade secret. The expiration of the injunction only occurs once the protected information is no longer secret. For more about trade secret litigation and related causes of action in litigation, see our Trade Secret Litigation web page.
Award of Damages For Trade Secret Misappropriation
With respect to monetary damages for misappropriating a trade secret, they can include both actual losses caused by the misappropriation of the trade secret, as well as any “unjust enrichment” not included in the actual loss calculations. On the other hand, damages can be calculated by royalty for the unauthorized use or disclosure of a trade secret. The ability to recover attorneys’ fees to the prevailing party is to the discretion of the court. For more about misappropriation causes of action in litigation, see our
Misappropriation Litigation web page.
Must Know Legislation Concerning Trade Secret
Defend Trade Secrets Act:
The Defend Trade Secrets Act of 2016 (DTSA) is a US federal law allowing the owner of a trade secret to sue in federal court when its trade secrets have been misappropriated. Additionally, it grants legal immunity to corporate whistleblowers.
Uniform Trade Secrets Act:
The Uniform Trade Secrets Act (UTSA) is a Uniform Act making state laws governing trade secrets uniform, proving especially beneficial to companies who operate in more than one state.
Economic Espionage Act of 1996:
The Economic Espionage Act of 1996 makes the theft or misappropriation of a trade secret a federal crime and, amongst other things, requires the criminal forfeiture of any proceeds of the crime and property derived from the proceeds.
Need any help?
Additional Trade Secret Focus
Trade Secret Attorneys
Our trade secret misappropriation attorneys have earned a reputation for aggressive, responsive, efficient and, most importantly, successful litigation. Our attorneys can draft effective trade secret agreements, as well as take your trade secret case through litigation and trial. Our straight forward unbiased guidance can protect your trade secret both in and out of court.
How Does A Trade Secret Differ From A Patent?
Do I Need to Register My Trade Secret?
In the United States one does not need to register a secret with any governmental body in order to qualify for trade secret protection. If the information is already a secret, the information has economic value due to its secrecy, and if reasonable measures are in place to keep the information secret then it is already considered a trade secret. Registration of a trade secret, or otherwise making a trade secret publicly available, would result in the loss of any trade secret protection.
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The law office of Wilson Legal Group P.C. (d/b/a Wilson Whitaker Rynell) represents clients nationwide, including Dallas, Austin, Houston, and other Texas areas such as Fort Worth, Arlington, Carrollton, Plano, Allen, Lewisville, Flower Mound, Irving, Denton, McKinney, North Richland Hills, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.
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Wilson Whitaker Rynell
16610 Dallas Parkway, Suite 1000
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