Is stealing a customer list unfair competition in California? What protections can San Diego and Southern California employers put in place to protect customer lists and other trade secrets of the business?
What Makes Stealing a Customer List Unfair Competition in California?
In many cases it may be possible to pursue “unfair competition” against a competitor who is allegedly guilty of theft and misappropriation of trade secrets and stolen customer lists. For example, if an employee were to take your company’s trade secrets and go to work for a competitor and attempt to use stolen customer lists an action can be brought under the statute. California Courts look for specific actions by former employees, as well as the nature of the customer lists, and how they were described within employment documents as “trade secrets.”
Establishing Trade Secrets in Employment Agreements and the Employee Handbook
Trade secrets hold the keys to what concerns many business owners: an effective non-compete strategy. California Courts have been widely perceived to limit the ability of a company to impose and enforce non-compete agreements and strategies. The Watkins Firm works with our clients to develop and enforce trade secret agreements as part of a strategy to actually prevent an employee from effectively working against your company in the future.
What else helps to make stealing a customer list unfair competition in California? These agreements must be accompanied by an acknowledgement by the employee as to what the trade secrets are, that the information is owned by the company, the process to protect and preserve secrecy as well as the intrinsic value of your customer lists. This is why it is important to review existing employment contracts, the employee handbook as well as existing policies and procedures to make sure they contain necessary protections. Your management team should take consistent action to protect, monitor and enforce these important provisions.
Learn How to Protect Your Company Against Stealing a Customer List
If you are concerned about protecting the trade secrets and company confidential information of your business, believe a current or former employee has access to stolen customer lists, or if you are concerned that a competitor might have violated California’s unfair competition laws we invite you to contact the Watkins Firm or call us for a free and thorough consultation at 858-535-1511. We will help you to establish trade secret policies that will stand up in California Courts. We will help you to hold previous employees accountable and put a stop it. Effective and consistent documentation and supporting actions are what make stealing a customer list unfair competition in California.
