Adequately protecting trade secrets can mean the difference between the success and failure of your business.
Find out more about intellectual property basics
Great
by River Braun, J.D.
River Braun was a business attorney in California for over a decade, assisting entrepreneurs on issues such as incorp...
Updated on: February 7, 2023 · 2 min read
No matter what business you're in, protecting your trade secrets should be a priority. From employee agreements to onsite security, here are some of the best ways your company can protect its most valuable business resources.
The Uniform Trade Secrets Act (UTSA) defines a trade secret as "information that has independent economic value by not being generally known and can reasonably be maintained a secret." This can be any piece of confidential information that has the potential to provide a competitive edge for your business, which may be related to:
More specific examples include the design of a smartphone or the recipe for a world-famous soft drink. In highly competitive business industries, employees may be tempted to steal these secrets to obtain a more lucrative position or sell those secrets to the highest bidder.
Trade secrets are protected by law. In the U.S., the UTSA and the Economic Espionage Act of 1996 forbid their misappropriation for commercial use. If you are a victim of trade secret misappropriation, the Defend Trade Secrets Act of 2016 (DTSA) gives you the right to bring a private civil lawsuit under the Economic Espionage Act.
Prior to the enactment of the DTSA, these cases were tried in state courts. While nearly all states enacted laws using the UTSA model, this process historically led to significant differences in how these cases were decided. Now that the DTSA has federalized trade secret protections, businesses have more certainty regarding litigating violations of these rights.
Aside from being able to sue for damages in federal court and to seek seizures of stolen information, there are other ways you can proactively protect your business and avoid the significant losses that are inherent in this kind of theft.
You can help safeguard the continued success of your business by:
If someone steals your trade secrets and a court finds that you did not take reasonable steps to protect them, you may lose your case, so it's important to take your secrets seriously and take a proactive approach to keeping them safe.
You may also like
Why Do I Need to Conduct a Trademark Search?
By knowing what other trademarks are out there, you will understand if there is room for the mark that you want to protect. It is better to find out early, so you can find a mark that will be easier to protect.
July 31, 2024 · 4min read
How to Write a Will: A Comprehensive Guide to Will Writing
Writing a will is one of the most important things you can do for yourself and for your loved ones, and it can be done in just minutes. Are you ready to get started?
July 21, 2024 · 11min read
How to Get an LLC and Start a Limited Liability Company
Considering an LLC for your business? The application process isn't complicated, but to apply for an LLC, you'll have to do some homework first.
October 3, 2024 · 11min read