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Trade secret litigation and non-disclosure agreements

On Behalf of | Oct 10, 2019 | San Francisco Civil Litigation Blog, Trade Secret Litigation |

There are many ways to gain a leg up on the competition in the business world. Some businesses are able to appeal to a certain market, while others are able to provide goods or services that are of a higher quality and a cheaper price than their competitors.

How a business gets there can vary on the circumstances, but it often takes a lot of time, work, and dedication. Extensive research and even trial and error can play into obtaining a competitive edge. When a company finds itself relying on a specialized process, technique, or information that it obtained and only it possesses, then it likely has a trade secret.

However, in order to protect that trade secret, a business needs to be proactive. One of the best ways to do so is to have employees who gain knowledge of the trade secret sign a non-disclosure agreement. This contract can specify which information is to be kept secret and for how long. That way, if an employee leaves an employer, then he or she is still legally bound to refrain from disclosing the secrets identified in the non-disclosure agreement.

While the hope is that those who enter into these agreements will abide by them, the truth of the matter is that these agreements are often breached. This can cause significant damage to a business and its competitive edge. In order to succeed on trade secret litigation, whether seeking an injunction, damages, or both, business need to make sure they are doing everything in their power to protect their secrets and that their non-disclosure agreements are not too broad in scope.

There is a lot on the line in these types of cases. That is why those coming face-to-face with trade secret issues need to be aggressive in protecting their interests. Law firms that are experienced at handling these types of cases can prove beneficial in helping businesses fight for outcomes that are in line with their best interests.



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