Misappropriation of trade secrets is an unfair business practice in San Diego and is a good strategy to prevent employees or independent contractors from using company confidential information to compete against you. Why are unfair business practices alleged in the majority of business related lawsuits in Southern California and how can you build the protections of trade secrets into your business strategy?
Non-Compete Agreements are Ineffective in California
Most employers are aware of California’s position on non-compete agreements and the challenges associated with enforcement of these agreements in our courts. The real question is: what steps can employers take to prevent employees from using company confidential or trade secret information to go out on their own and ultimately compete against you?
The establishment of trade secrets is one potential strategy. There are complex laws which govern how trade secret information is identified, classified and protected here in San Diego. What information can be established as “trade secret”, and what steps must you take as an employer to identify this to your employees and protect the enforceability of your rights?
The answer generally lies in two tests: the availability of the information outside of your company environment and the value of that information to your competitors as well as your own business.
Common examples of potential trade secret protection would extend to:
- Customer and supplier lists
- Trademarks, logos and other corporate intellectual property
- Unique processes or marketing strategies
- Industry specific or technical knowledge
- Correspondence including e-mails and texts from corporate phones
The Misappropriation of Trade Secrets in an Unfair Business Practice in San Diego and Southern California
The misappropriation of trade secrets is an unfair business practice in San Diego and Southern California. There are other factors which affect a sound trade secret strategy, and it is important to ensure all corporate documents including your policies and procedures are regularly reviewed and updated. A well-conceived and executed trade secret strategy protects vital intellectual property, formulas, processes, market strategies and even customer lists. If an employee or partner takes any established and properly protected trade secret to a competitor or to start their own business, they can be legally liable for unfair business practices.
The Watkins Firm has decades of experience serving the San Diego business community. The misappropriation of trade secrets is enforceable under California law and we are uniquely positioned to provide sound counsel for our clients and help to protect their business and information that is crucial to business success.
If you are interested in additional information regarding non-compete strategies or the misappropriation of trade secrets we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
