Starting a business can be incredibly satisfying, as well as exhausting. It could be one of the biggest projects you ever undertake in your lifetime—especially if it becomes successful and is a lasting venture. You may start out with a handful of employees, but see your team expand into a much larger group as time goes on. You may also have begun either alone in business or with one or two partners—but this could either expand or you may buy out a partner or two over time too. In the beginning, you may not have had much intellectual property to speak of as you sold a product or delivered services that were not completely unique.
As the years pass though and you begin seeing your vision come to fruition, you and your team may have created concepts, innovations, products, or techniques that must be kept confidential from the public—and mainly, the competition! To lose a trade secret could mean losing your edge within your industry and could be financially devastating. As a business owner, not only must you consider this in terms of full-time employees but also independent contractors, and those who are exiting the company—no matter their title or capacity within the company.
Misappropriation occurs when either another party has a trade secret in their grasp through inappropriate means, or someone from within your company has disclosed confidential information and has essentially leaked the trade secret. If you are worried about this, consult with a business litigation attorney like Shane Coons immediately to plan a course of legal action.
Most business owners try to prevent misappropriation from happening through communicating with employees and contractors at the onset about the consequences of such duplicitous behavior. And although those leaking or give trade secrets away blatantly may be completely aware that what they are doing is a breach of contract, it does happen. The key is in creating a confidentiality contract ahead of time that is enforceable in a court of law. In the end, this could be one of the most valuable things you ever do! Trade secrets can have a profound effect on the stability of your company—and losing one has the potential to be devastating. It could be a design, notes regarding such a design, software, or perhaps critical business information like a marketing campaign, customer contact lists, employee data, and more.
Contracts for everyone working at the company may include confidentiality clauses, as well as specific instructions about not disclosing information about trade secrets—and what is expected of them in that regard. Such contracts should be created with the help of a skilled business attorney so that your business is protected comprehensively, as well as helping to avoid misunderstandings with those who work for you. This can also help prevent indirect disclosure of company trade secrets.
In the case of misappropriation, you may be able to prevent those in possession of the trade secrets from using them. You may also be due damages or compensation due to the release of such important business secrets. You must also be able to prove, however, that you took measures to avoid such an outcome through having employees sign contracts with confidentiality clauses or those outlining non-compete information or non-disclosure.
If you have concerns about drawing up the proper preventative contracts or are worried about current trade secret misappropriation, consult with Attorney Shane Coons. Our law office represents clients involved in a wide range of businesses and legal issues, and we would be glad to review your case and help you explore your options. Call now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.