Protecting Your Business from Trade Secret Theft
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Protecting Your Business from Trade Secret Theft

Elizabeth Pierce

Elizabeth Pierce

Founding Partner

February 1, 20246 min read

Protecting Your Business from Trade Secret Theft

In today's competitive business environment, your company's confidential information and trade secrets may be its most valuable assets. Protecting them requires proactive measures and swift action when breaches occur.

What Qualifies as a Trade Secret?

Under the Defend Trade Secrets Act, a trade secret is information that:

  • Derives economic value from not being generally known
  • Is subject to reasonable efforts to maintain its secrecy
  • This can include formulas, patterns, compilations, programs, devices, methods, techniques, or processes.

    Protective Measures

    Employment Agreements

  • Non-disclosure agreements (NDAs) for all employees with access to sensitive information
  • Non-compete agreements where enforceable
  • Clear assignment of intellectual property rights
  • Physical and Digital Security

  • Access controls and password protection
  • Encryption of sensitive data
  • Visitor logs and restricted areas
  • Exit interviews and access termination procedures
  • Documentation

  • Mark confidential documents appropriately
  • Maintain logs of who accesses sensitive information
  • Document your protection efforts—this is crucial for litigation
  • When Theft Occurs

    If you suspect trade secret misappropriation:

    1. Preserve all evidence

    2. Document the suspected breach

    3. Consult with litigation counsel immediately

    4. Consider seeking a temporary restraining order

    Available Remedies

    The law provides robust remedies for trade secret theft:

  • Injunctive relief to stop ongoing misappropriation
  • Actual damages or unjust enrichment
  • Exemplary damages for willful misconduct
  • Attorney's fees in exceptional cases
  • Contact Us

    Hamilton & Pierce has extensive experience protecting clients' trade secrets and pursuing those who steal them. Contact us for a confidential consultation.

    Elizabeth Pierce

    About the Author

    Elizabeth Pierce

    Founding Partner

    A nationally recognized corporate attorney, Elizabeth leads our transactional practice with strategic precision.