What is the value of a misappropriation of trade secrets strategy in your business model? California has made non-compete agreements all but unenforceable in most instances. However, many businesses are concerned about a current or former employee or even a business partner using what they’ve learned within the company to either provide competitive information outside of the organization or compete against the company directly for personal gain. How can the implementation of a trade secret policy benefit your organization?
What is a Trade Secret and How is it Established?
A trade secret is basically defined in the legal realm as information or a business process that is not “reasonably or independently ascertainable” outside of the entity or situation in which it exists. Trade secrets must be “secured” with access limited to those with a “need to know.”
Trade secrets must be clearly labeled and you are required to carefully control access. Storage in an area of the company which requires a key or coded card access is a general practice for the securing of trade secrets. Not every employee should have the ability to access a designated trade secret. This definition creates some very important practical limitations within a corporate setting. However, these limitations are also a critical component of preserving and enforcing the value of a misappropriation of trade secrets strategy.
What Types of Processes or Information Can Be Considered to be a Trade Secret?
Trade secrets can include important internal business information such as customer lists, suppliers, marketing strategies, as well as the documentation of processes associated with the creation and/or delivery of trade secret products, recipes or intellectual property. Trade secret information can include software, secret ingredients or unique recipes, industry intelligence, technical specifications, internal corporate documents and production techniques.
The Value of a Misappropriation of Trade Secrets Strategy Requires the Ability to Enforce It
The value of a misappropriation of trade secrets strategy requires 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.
How Can The Watkins Firm Help You to Implement a Trade Secret Strategy?
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. Ask about the specific steps your organization would take to develop, implement and enforce a trade secret strategy to prevent an 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.
We invite you to review our Podcast Episode 10 – The Importance of a Strong Corporate Attorney, the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
