When people hear the phrase “trade secret litigation,” they likely envision large, wealthy, tech corporations arguing over allegations that one company stole the trade secrets of another and is using that information to make a profit. But trade secrets, and the laws that protect them, don’t have to involve cutting-edge technology or even computer data. The state and federal statutes that protect trade secrets are broad and encompass a wide array of materials and information.
The Texas Uniform Trade Secrets Act defines “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 if:
- the owner of the trade secret has taken reasonable measures under the circumstances to keep the information secret; and
- the information derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, another person who can obtain economic value from the disclosure or use of the information.”
For example, an insurance agent’s customer list or book of business, whether stored in hard copy format or a basic electronic spreadsheet, would be a trade secret if that agent makes efforts to keep that information confidential and the information isn’t generally known to the public. Likewise, if a company has a restricted area meant to protect operations from view, unauthorized photographs of that area could violate trade secret laws.
Trade secret laws aren’t expansive only in terms of the information they protect. They also potentially expand a plaintiff’s right to investigate, through discovery during litigation, a defendant’s personal possessions such as computers, electronic devices, and documents that a court deems to be closely related to the plaintiff’s allegations, thereby creating a “direct nexus,” that could help make a “clear and convincing” case that a trade secret misappropriation occurred.
If you are in a trade secret dispute, as either a business owner or a former employee, it’s important to seek legal advice to either reduce the likelihood of damages from loss of trade secret confidentiality, or to protect your privacy and reputation as a former employee. The need for procedures such as temporary restraining orders, temporary injunctions, and protective orders against inspection arise very early during trade secret disputes, and a qualified attorney will understand how to navigate this contentious process on your behalf. Our firm has experience in representing companies and former employees in trade secret disputes and litigation and has brought these matters to a favorable conclusion for our clients by way of award and settlement.
The attorneys at De Leon & Washburn, P.C. are available to assist clients and out-of-state counsel with business and administrative matters. For more information regarding the firm’s practice areas, please visit our Practice Areas page, and please feel free to contact the attorneys at any time.
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