The Federal Uniform Trade Secrets Act (UTSA), as well as The Texas Uniform Trade Secrets Act; forbid the misappropriation of trade secrets. Unlike other forms of intellectual property, such as patents, copyrights, and trademarks, trade secrets cannot be registered with the government as they are proprietary information held in secret by a company. Trade secrets are protected by keeping them confidential and executing the proper agreements with your business partners and employees.
While you must secure and protect trade secrets well in advance of any litigation, our firm represents plaintiffs and defendants in trade secret litigation in Texas, and throughout the country, in the event, your trade secret is misappropriated.
Trade secrets are a type of intellectual property that comprise formulas, practices, processes, designs, instruments, patterns, or compilations of information that is not generally known or readily ascertainable by others. Trade secrets have inherent economic value because they provide a company a strategic advantage over its competitors. The formula for Coca-Cola, for instance, is a very, very famous trade secret. Some other examples of potential trade secrets include:
Trade secret protection begins early with the proper legal documentation in place before any trade secret is ever disclosed to any person or entity. Legal documentation to protect a trade secret would include the following:
Many companies require their employees and contractors to execute NDAs as a condition of employment. Anything that is public knowledge or general knowledge in an industry cannot be claimed as a trade secret. Further, anything that is entirely disclosed by the marketed goods cannot be a trade secret; for instance, if the ingredients are listed, a recipe would most likely not be a trade secret.
Our Dallas trade secret litigation attorneys have earned a reputation for aggressive, responsive, efficient, and most importantly, successful trade secret litigation. While we are prepared to take every case to trial, we know from our clients' perspective that often, the best litigation is the one that settles in mediation. Our straight forward unbiased guidance can help you avoid litigation whenever possible. However, if needed, our litigators are skilled in negotiation techniques and have a reputation for achieving very favorable results for our clients both in-court and out-of-court.
Similar to the Federal Uniform Trade Secrets Act (UTSA), The Texas Uniform Trade Secrets Act 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 provided that the owner has done the following:
The plaintiff in a trade secret lawsuit must prove the following:
Often companies become defendants in a trade secret lawsuit because of their own employees, so the best way to avoid trade secret liability is to ensure that your company’s employees do not misuse another company’s trade secret information.
A party may seek an injunction prohibiting a former employee from any actual or threatened trade secret misappropriation provided that the injunction does not prohibit that employee from using the general knowledge, skill, and experience that person acquired during employment. Unfortunately, trade secrets are often misappropriated. by employees, customers, developers, distributors, suppliers, and others for economic gain. It is vital to act quickly if you believe your trade secret has been misappropriated because once a trade secret becomes public, its status as a trade secret may be lost forever.
Common defenses
employed by a defendant against a plaintiff in a trade secret
litigation include the following:
Companies often lose trade secrets inadvertently. For instance, some companies included trade secret information in published patent applications, thereby losing protection as a trade secret. Some companies fail to enter into non-disclosure agreements and confidentiality agreements with employees and vendors. Others inadvertently disclosure trade secrets in marketing materials or other publications meant for consumption by the general public.
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