Preventing and Policing Industrial Espionage

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 industrial espionage apply to trade secret protection?

Industrial espionage is the theft or misappropriation of a company’s trade secrets, often by competitors, former employees, or other malicious actors. Accordingly, businesses must implement robust internal policies, confidentiality agreements, and security measures. Proactive measures (i.e., monitoring employee access to sensitive information) can help prevent industrial espionage and protect a company’s valuable trade secrets.

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

Which laws, procedures, and regulations apply to preventing and policing industrial espionage in Florida?

In Florida, trade secret protection and the prevention of industrial espionage are primarily governed by two laws: the Florida Uniform Trade Secrets Act (FUTSA) and the federal Defend Trade Secrets Act (DTSA). FUTSA (Florida Statutes § 688.001-688.009) provides remedies for trade secret misappropriation, including injunctions, damages, and attorney’s fees. DTSA (18 USC § 1836), a federal statute, creates a private right of action for trade secret misappropriation, allowing companies to sue in federal court.

Additionally, other laws, such as the Computer Fraud and Abuse Act (CFAA) and the Economic Espionage Act (EEA), may be applicable in cases involving unauthorized access to computer systems or theft of trade secrets for the benefit of foreign entities. Businesses in Florida should be aware of these laws and consult with experienced legal counsel to ensure they adequately protect their trade secrets.

How can employers strategically benefit from preventing and policing industrial espionage?

Maintaining a Competitive Edge: Safeguarding trade secrets helps businesses preserve their unique advantages in the market.
Attracting Investment: Investors are more likely to invest in businesses that can demonstrate effective protection of their valuable intellectual property, which can lead to increased growth and market share.
Reducing the Risk of Litigation: By implementing robust internal policies, businesses can minimize the risk of costly and time-consuming legal disputes related to trade secret misappropriation.
Enhancing Company Reputation: Companies known for protecting their trade secrets and proprietary information are perceived as reliable and trustworthy, fostering customer loyalty and strengthening brand reputation.

What steps should counsel for employers take to prevent and police industrial espionage effectively?

Counsel should consider the following to protect their clients:

Conduct a Trade Secret Audit: Identify and classify valuable trade secrets, assess their vulnerability to misappropriation, and determine the necessary level of protection.
Implement Robust Internal Policies: Develop comprehensive security measures, confidentiality agreements, and employee training programs to ensure that sensitive information remains secure.
Monitor and Control Access: Limit access to trade secrets to essential personnel only, and monitor employee activity to detect and prevent unauthorized access or disclosure.
Enforce Non-Disclosure and Non-Compete Agreements: Regularly review and update agreements with employees, contractors, and business partners to maintain the confidentiality of trade secrets and protect against potential threats.
Collaborate with Law Enforcement: In cases of suspected industrial espionage, cooperate with local and federal law enforcement agencies to investigate and prosecute offenders under applicable laws, such as FUTSA, the DTSA, and the EEA.
Stay Informed about Industry Developments: Regularly review changes to relevant statutes, regulations, and case law, as well as advancements in technology and industry best practices, to adapt and improve trade secret protection strategies.

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

How does Florida law define trade secrets?

Under FUTSA, a trade secret is information that (a) derives independent economic value from not being generally known or readily ascertainable by others, and (b) is the subject of reasonable efforts to maintain its secrecy. This broad definition encompasses various types of information, such as formulas, patterns, devices, and compilations.

What is the difference between the Florida Uniform Trade Secrets Act (FUTSA) and the federal Defend Trade Secrets Act (DTSA)?

FUTSA is a state statute governing trade secret misappropriation claims in Florida. At the same time, the DTSA is a federal law that provides a private cause of action for trade secret misappropriation across state lines. While both statutes have similarities, the DTSA offers additional remedies, such as ex parte seizure orders, and does not preempt FUTSA or other state trade secret laws.

Can a company still protect its trade secrets even after an employee leaves?

Employers can protect their trade secrets after an employee’s departure by implementing NDAs and non-compete agreements. These agreements help maintain the confidentiality of trade secrets and protect against potential threats from former employees. Additionally, ongoing monitoring and enforcement of these agreements can deter the misappropriation of trade secrets.

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

Crucially, this overview of preventing and policing industrial espionage 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.