Misappropriation of Trade Secrets

What is the importance of trade secret protection?

Trade secret protection safeguards valuable, confidential information businesses use to gain a competitive edge. For Florida employers, trade secret protection is crucial to preserving their competitive advantage and fostering innovation. Trade secrets include customer lists, pricing strategies, product formulas, or proprietary software. Losing trade secrets to competitors may result in significant financial losses and long-lasting harm to a business’s reputation.

For instance, suppose a former employee misappropriates customer lists and shares them with a competing business. In this case, the employer could file a lawsuit against the former employee and the competitor to seek damages, injunctive relief, and attorney’s fees. This legal recourse demonstrates the importance of trade secret protection in preserving the value of a company’s confidential information under Florida and federal law.

Need a legal advocate to evaluate your trade secret protection options? Schedule your consultation today with a top trade secret protection attorney.

How does the misappropriation of trade secrets apply to trade secret protection?

Businesses should proactively prevent misappropriation and, when necessary, seek temporary and permanent injunctions. These legal remedies are available under the Florida Uniform Trade Secrets Act (FUTSA) and the federal Defend Trade Secrets Act (DTSA).

When a trade secret has been misappropriated or is at risk of misappropriation, a business can file a lawsuit to request a temporary or permanent injunction to halt the unauthorized use or disclosure of the trade secret. For example, a Florida company may discover that a former employee shared proprietary information with a competitor. In this situation, the company can pursue legal action and seek an injunction to prevent further use or dissemination of the trade secret under Florida and federal law.

Please contact our office to set up your initial consultation to determine whether trade secret protection services may be available for your unique situation.

How can employers strategically benefit from seeking temporary and permanent injunctions to prevent the immediate use of trade secrets?

Preserving Competitive Advantage: By protecting trade secrets, employers maintain their edge in the market, ensuring that their unique processes, technologies, and other proprietary information are not leaked to competitors.
Safeguarding Investments: Employers often invest substantial resources into research and development, employee training, and other activities related to trade secrets. Preventing misappropriation helps protect these investments.
Attracting and Retaining Talent: Companies with a reputation for protecting their intellectual property can attract top-tier talent who value working in an environment that respects and secures their innovations.
Reducing Potential Damages: Seeking temporary and permanent injunctions can minimize financial losses resulting from the unauthorized use of trade secrets, as it prevents the misappropriating party from profiting or causing further harm.
Deterring Future Misappropriation: Proactively pursuing legal action demonstrates an employer’s commitment to protecting trade secrets and may deter potential wrongdoers.

What steps should counsel for employers take to prevent the misappropriation of trade secrets?

Counsel should consider the following to protect their clients:

Identify and Document Trade Secrets: Clearly define and maintain records of the company’s trade secrets, ensuring they are adequately described and categorized.
Implement Protective Measures: Develop and enforce policies, procedures, and security protocols to safeguard trade secrets, including non-disclosure agreements, employee training, and access restrictions.
Monitor and Detect Potential Misappropriation: Regularly review internal processes, employee activity, and potential external threats to identify any signs of misappropriation or unauthorized access to trade secrets.
Act Promptly in Case of Misappropriation: If misappropriation is detected, swiftly initiate legal action to seek temporary and permanent injunctions under Florida’s Uniform Trade Secrets Act (FUTSA) or the federal Defend Trade Secrets Act (DTSA).
Gather and Present Evidence: Collect all relevant evidence, such as documents, communications, and witness testimony, to establish the misappropriation and the resulting harm to the company.
Collaborate with Experts: Engage technical and industry experts to provide insight and context on the value of the trade secret and the potential impact of its misappropriation on the company’s operations and market position.

When a set of facts is appropriate for legal intervention, 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 to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation or another form of specialized advocacy, please contact our office to set up your initial consultation.

Frequently Asked Questions

What constitutes a trade secret under Florida law?

Under FUTSA, a trade secret is “information, such as a formula, pattern, compilation, program, device, method, technique, or process, that has independent economic value and is not generally known or readily ascertainable by others.” Additionally, the information must be subject to reasonable efforts to maintain its secrecy.

How long does a trade secret injunction last in Florida?

The duration of a trade secret injunction in Florida varies based on the circumstances. Temporary injunctions typically last until the case’s final resolution or until further court order. Permanent injunctions, however, can extend indefinitely. The court determines the duration based on factors such as the nature of the trade secret and the harm caused by the misappropriation.

Can I recover damages for trade secret misappropriation in Florida?

Yes, under the DTSA, you can recover damages for trade secret misappropriation. The damages may include actual losses caused by the misappropriation, any unjust enrichment obtained by the misappropriating party, or a reasonable royalty. Additionally, if the misappropriation was willful and malicious, the court may award exemplary (punitive) damages up to twice the compensatory damages.

Have more questions about how your company can transform its trade secret protection processes?

Crucially, this overview of preventing the misappropriation of trade secrets and seeking temporary and permanent injunctions to prevent the immediate use of trade secrets 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 tireless advocates at every step. 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 schedule a consultation.