Wilson Whitaker Rynell

Experienced Lawyers

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DALLAS FORT WORTH TRADE SECRET LITIGATION

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TRADE SECRET PROTECTION

Uniform Trade Secrets Act & Trade Secret Misappropriation


The Federal Uniform Trade Secrets Act (UTSA), as well as The Texas Uniform Trade Secrets Act; forbid the misappropriation of trade secrets.  Unlike other forms of intellectual property, such as patents, copyrights, and trademarks, trade secrets cannot be registered with the government as they are proprietary information held in secret by a company. Trade secrets are protected by keeping them confidential and executing the proper agreements with your business partners and employees. 


While you must secure and protect trade secrets well in advance of any litigation, our firm represents plaintiffs and defendants in trade secret litigation in Texas, and throughout the country, in the event, your trade secret is misappropriated.


What is a Trade Secret?


Trade secrets are a type of intellectual property that comprise formulas, practices, processes, designs, instruments, patterns, or compilations of information that is not generally known or readily ascertainable by others.  Trade secrets have inherent economic value because they provide a company a strategic advantage over its competitors.  The formula for Coca-Cola, for instance, is a very, very famous trade secret.  Some other examples of potential trade secrets include:

 

  • an invention for which a patent application has not yet been filed; 

 

  • the formula for a new soda; 

 

  • internal marketing strategies;

 

  • manufacturing techniques, and

 

  • novel computer algorithms.

 


Trade Secret Protection


Trade secret protection begins early with the proper legal documentation in place before any trade secret is ever disclosed to any person or entity.  Legal documentation to protect a trade secret would include the following:

 

  • Non-disclosure agreements;

 

  • Non-solicitation agreements;

 

  • Non-compete agreements; and

 

  • Confidentiality agreement.

 

Many companies require their employees and contractors to execute NDAs as a condition of employment. Anything that is public knowledge or general knowledge in an industry cannot be claimed as a trade secret. Further, anything that is entirely disclosed by the marketed goods cannot be a trade secret; for instance, if the ingredients are listed, a recipe would most likely not be a trade secret.


Dallas Trade Secret Litigation Lawyers


Our Dallas trade secret litigation attorneys have earned a reputation for aggressive, responsive, efficient, and most importantly, successful trade secret litigation. While we are prepared to take every case to trial, we know from our clients' perspective that often, the best litigation is the one that settles in mediation. Our straight forward unbiased guidance can help you avoid litigation whenever possible. However, if needed, our litigators are skilled in negotiation techniques and have a reputation for achieving very favorable results for our clients both in-court and out-of-court. 



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Additional Trade Secret Litigation Focus 

Definition of a Trade Secret


Similar to the Federal Uniform Trade Secrets Act (UTSA), The Texas Uniform Trade Secrets Act defines a "Trade Secret" as all forms and types of information, including business, scientific, technical, economic, or engineering information, and any formula, design, prototype, pattern, plan, compilation, program device, program, code, device, method, technique, process, procedure, financial data, or list of actual or potential customers or suppliers, whether tangible or intangible and whether or how stored, compiled, or memorialized physically, electronically, graphically, photographically, or in writing provided that the owner has done the following: 

 

  • the owner of the trade secret has taken reasonable measures to keep the trade information secret; 

 

  • the information derives independent economic value, actual or potential, from not being generally known to the public; and 

 

  • the trade information is not readily accessible through other legal means.

 


How to Prove a Trade Secret Claim


The plaintiff in a trade secret  lawsuit must prove the following:

 

  • You have a trade secret capable of protection;

 

  • You made reasonable efforts to prevent that trade secret from being disclosed; and

 

  • An unauthorized misappropriation of the trade secret has occurred.

 

Often companies become defendants in a trade secret lawsuit because of their own employees, so the best way to avoid trade secret liability is to ensure that your company’s employees do not misuse another company’s trade secret information. 


Trade Secret Injunction Against an Employee 


A party may seek an injunction prohibiting a former employee from any actual or threatened trade secret misappropriation provided that the injunction does not prohibit that employee from using the general knowledge, skill, and experience that person acquired during employment.  Unfortunately, trade secrets are often misappropriated. by employees, customers, developers, distributors, suppliers, and others for economic gain.  It is vital to act quickly if you believe your trade secret has been misappropriated because once a trade secret becomes public, its status as a trade secret may be lost forever.


Defenses to a Trade Secret Lawsuit


Common defenses employed by a defendant against a plaintiff in a trade secret litigation include the following:

 

  • a defendant's independent development of the materials without access or use of plaintiff's trade secrets;

 

  • plaintiff's trade secrets already exist in the public domain and are not actually secrets at all; and

 

  • The plaintiff did not take proper efforts to protect and secure its trade secrets.

 

Companies often lose trade secrets inadvertently.  For instance, some companies included trade secret information in published patent applications, thereby losing protection as a trade secret. Some companies fail to enter into non-disclosure agreements and confidentiality agreements with employees and vendors.  Others inadvertently disclosure trade secrets in marketing materials or other publications meant for consumption by the general public. 

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