Did you know that a strategy based upon misappropriation of trade secrets protects against competition – internal and external? California specifically outlaws all forms of non-compete agreements. You want nothing to do with them, and if you use them anywhere else in the country you have to handle your business differently here in California. Are you concerned an employee or even a partner or competitor will gain access to your sensitive competitive information and use it to compete against you?
Key Takeaways about How a Strategy Based on Misappropriation of Trade Secrets Protects Against Competition – both internal and external
- Non-compete agreements are illegal here in California.
- Misappropriation of trade secrets is still a valid process to protect your company’s intellectual property, internal processes and secrets.
- You need an experienced California business attorney to advise your company in this area, especially if you do business outside of the State of California as well.
Non-Compete Agreements are Against the Law in California. Full Stop.
Non-compete agreements or restrictive covenants have historically been viewed under California law as a restraint of trade. Recently, new laws have made any form of non-compete language as well as non-compete agreements illegal in the State of California. If your company wishes to successfully implement a strategy to protect your interests you will need the advice, counsel and legal services of the experienced employer defense and trade secret attorneys at the Watkins Firm. Draw on our 40+ years of experience serving the business, science and tech, real estate and medical / healthcare communities here in San Diego and throughout California.
Many small to mid-sized businesses are concerned employees or even disgruntled business partners will attempt to take what they’ve learned and ultimately compete against the company. You may have heard horror stories about California Courts in the past and the recent ban making non-compete agreements illegal here in San Diego and across California. What is the best strategy to protect yourself?
Misappropriation of Trade Secrets Protects Against Competition and Protects Your Company’s Intellectual Property
It is absolutely possible to protect your intellectual property, secrets, strategies and processes, as well as the legitimate business interests of your company. You must establish limitations on access and the use of corporate resources including computers, laptops, cell phones and other internal systems which access crucial internal business information about customers, suppliers, inside trade knowledge and practices as well as intellectual property and proprietary recipes.
The most effective strategy will focus upon the protection of “trade secrets” and the intellectual property of your business. A strategy based on pursuing misappropriation of trade secrets against competition from within and without, can be a very effective alternative in San Diego and throughout California.
There are specific steps which must be taken to clearly establish the content and nature of your company’s trade secrets and intellectual property. This includes information about customers and suppliers, marketing tactics and proprietary processes and recipes. It must be secured, properly labeled and designated and should be supported as part of employment documents such as the employee handbook and policies and procedures.
The goal of any such agreement should be to protect your organization from the misappropriation of trade secrets and use of inside proprietary customer, supplier and business practices knowledge to compete against your business.
Pro-Tip: “non-compete agreements are illegal in the State of California. The value of a misappropriation of trade secrets strategy lies in the ability to enforce it when a trade secret is disclosed or used against the company in competition. One must be able to prove that the information, process or trade secret was unfairly accessed or removed, disclosed or otherwise competitively implemented by the party who took it. The trade secret was thereby used against the interests of your company without authorization. The misappropriation of a trade secret opens the violator to exposure of legal remedies including an immediate injunction to cease further actions or competition as well as the recovery of financial damages associated with the misappropriation.
Pro-Tip: “Unfortunately, the types of people who attempt to do these types of things are well known to you: employees, co-owners or shareholders, vendors, or even customers. How are you supposed to protect your ‘secret recipe’ for success, the unique creations and processes developed by your company, and the strategies that give your company the competitive edge?
The business attorneys at the Watkins Firm have more than 40 years of experience with strategies to protect your corporate interests, including the establishment and enforcement of trade secrets. We invite you to a discussion. There are specific steps your organization would need to take to develop, implement and enforce a trade secret strategy, and prevent a current or former employee or business partner from using your company’s trade secret information, processes or intellectual property and deploying it for personal gain or to compete against you.” – Dan Watkins, Founding Partner
A Sound Strategy to Protect Your Business
Misappropriation of trade secrets protects against competition – both internal and external. A sound strategy to protect your business in California should focus on the protection of trade secrets and intellectual property. Want to learn more? We invite you to review our podcast Episode 32 – Business Fraud as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today. Ask how our experienced business contract attorneys can work with you to develop and implement enforceable policies and protections to protects your interests.
