As a business owner, your trade secrets are your livelihood. Whether you’re a baker who has spent years perfecting your tiramisu recipe or a business using a specific algorithm to help brands reach larger audiences, ensuring you keep your processes secret is critical for your success. As such, if you discover that someone has acquired your trade secret through improper means, you may be unsure of what to do. If this reflects your circumstances, you may be a victim of trade secret misappropriation. The following blog explores what you should know about these difficult matters and the importance of discussing your legal options with a trade secret disputes attorney.

What Are Trade Secrets?

A trade secret, in short, is any information that is integral to the operations and success of a business, and that business has taken reasonable steps to keep that information confidential. Generally, this can include recipes, formulas, processes, patterns, customer lists, suppliers, or technology that helps a business gain economic value by remaining unknown to anyone other than the business.

To keep trade secrets, employers must take reasonable steps to protect the information. While all trades are different, the following are examples of measures enacted by businesses to protect their trade secrets:

  • Providing the information on a need-to-know basis
  • Installing security software on devices that store the information to protect it from hacking
  • Physically locking away trade secrets after business hours
  • Marking files containing information as confidential

Many employers also utilize Non-Disclosure Agreements (NDAs), which are legally binding agreements that protect confidential information. Many businesses require employees to sign these agreements to ensure their information is protected from disclosure.

What Warrants a Misappropriation Claim in Georgia?

Generally, any time there is improper disclosure or acquisition of trade secrets, it constitutes misappropriation. As such, under the Uniform Trade Secrets Act (USTA), any time someone acquires or receives a trade secret through improper means, such as theft, bribery, or espionage, through electronic or other means, it can constitute misappropriation. In short, if someone obtains your trade secret even though they know it was stolen, they can be held liable. Additionally, if an ex-employee discloses this secret to a competitor of your company, it can warrant trade secret misappropriation.

In many instances, misappropriation of trade secrets is a criminal act, and the perpetrator can be subject to federal charges if they are charged, tried, and convicted of this offense.

As you can see, trade secrets can be incredibly complex, which is why working with an experienced attorney with AB law is in your best interest. Our team understands how complicated business litigation can be to navigate, which is why our firm is committed to helping you through these difficult times. If you believe your trade secrets were misappropriated, do not hesitate to contact our firm today to learn how we may be able to assist you.