Misappropriation of a Trade Secret

What is the misappropriation of a trade secret?

In Florida, misappropriating trade secrets is a civil offense when someone uses or discloses another person’s trade secrets without authorization. In addition, Florida’s Uniform Trade Secrets Act (UTSA) provides legal protection for trade secrets.

Under the UTSA, a trade secret is any information that:

• Derives independent economic value from not being generally known or readily ascertainable; and
• It is the subject of reasonable efforts to maintain its secrecy under the circumstances.

Examples of trade secrets may include but are not limited to, formulas, processes, designs, inventions, customer lists, and referral lists.

Need help with a potential misappropriation of a trade secret? Schedule your consultation today with a top business litigation attorney.

What legal issues typically arise related to the misappropriation of a trade secret?

The following disputes are among the most common to the misappropriation of a trade secret:

• Determining whether the information qualifies as a trade secret: To claim protection under trade secret law, the information in question must meet the legal definition of a trade secret, which means that the information must be valuable because it is not generally known, and the owner must have taken reasonable steps to keep it confidential.
• Proving misappropriation: The plaintiff must show that the defendant acquired, used, or disclosed the trade secret without authorization. Showing improper use can be challenging, especially if the defendant obtained the information independently or if there was no formal agreement protecting the trade secret.
• Statute of limitations: Plaintiffs must file trade secret misappropriation claims within a specific time frame, known as the statute of limitations. In Florida, the statute of limitations for trade secret misappropriation is three years from the time the misappropriation was discovered or should have been found with reasonable diligence.
• Preemption: In some cases, federal law may preempt state law claims related to trade secret misappropriation. Federal preemption may happen if the trade secret is related to technology or if the misappropriation implicates foreign entities or national security issues.

What are relevant laws related to the Misappropriation of a Trade Secret in Florida?

The Florida Statutes primarily govern trade secrets, including the following:

• Sections 688.001 – 688.009 address trade secrets as a whole;
• Section 688.003 indicates that injunctive relief is available in cases of misappropriation;
• Section 688.004 shows the type of monetary damages available; and
• Section 688.007 indicates that a statute of limitations for an action for the misappropriation of a trade secret is three years.

What is required to prove a case of the misappropriation of a Trade Secret in Florida?

To prove an allegation of the misappropriation of a trade secret, the plaintiff must show the following:

• The plaintiff owns a valid trade secret that was subject to reasonable efforts to maintain its secrecy;
• The defendant acquired, used, or disclosed the plaintiff’s trade secret without authorization; and
• The defendant’s actions damaged the plaintiff.

When a set of facts is appropriate to meet the requirements of the Misappropriation of a Trade Secret, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path forward to seek appropriate remedies, such as:

• Injunctive relief
• Monetary damages
• Attorney’s fees

To see what actions may be available for your unique situation, please contact our office to set up your initial consultation.

What are common defenses to the misappropriation of a trade secret in Florida?

The primary defenses to the misappropriation of a trade secret in Florida include:

• Independent development: The defendant may argue that they developed the information independently and did not use or disclose the plaintiff’s trade secret. To make this defense, the defendant must show that they did not have access to the plaintiff’s trade secret and that they developed the information through their research or efforts.
• Lack of trade secret status: The defendant may argue that the information in question does not qualify as a trade secret under Florida law. To make this defense, the defendant must show that the information is generally known or readily ascertainable and that the plaintiff did not take reasonable steps to maintain its secrecy.
• Authorization: The defendant may argue they had permission to use or disclose the information. To make this defense, the defendant must show they had a contractual or another legal right to use or disclose the information.
• Statute of limitations: The defendant may argue that the statute bars the plaintiff’s claim.
• Lack of damages: The defendant may argue that the plaintiff did not suffer any damages due to the alleged misappropriation. To make this defense, the defendant must show that the plaintiff did not lose any money or other tangible benefits due to the misappropriation.

One core strategy for defending against an allegation of misappropriation of a trade secret is to argue that there is no trade secret present. The defendant can prove this by showing it is generally known or readily ascertainable. General knowledge requires evidence that many unauthorized parties have access or that the plaintiff did not take sufficient measures to keep the item secret.

To see what defenses may be available for your unique situation, please contact our office to set up your initial consultation.

Have more questions about a misappropriation of a trade secret-related situation?

Crucially, this overview of the misappropriation of a trade secret does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.