Trade secret law is a form of legal protection provided by the laws of certain countries. Trade secret protection is designed to protect certain business information that is considered ‘secret’ — as in, not generally known. What qualifies as a trade secret, how it can be protected, and what constitutes misappropriation of trade secrets are widely debated topics. A trade secret may include anything from a formula for a product to the design of a machine or prototype of an architectural blueprint.
When a person discloses certain confidential information to another and it is subsequently misused, there is an actionable wrong. The obligation of confidence need not be between just the two persons and it can be extended to those persons to whom the confidential information is passed on with knowledge that it had previously been disclosed in confidence . In this case, the trade secret was disclosed under confidence, even without any express non-disclosure agreement. But by merely refusing to sign such an agreement, the defendant wasn’t acquitted from liability. The law of breach of confidence can be applied to protect trade secrets when a party that has acquired information on account of a confidential relationship subsequently misappropriates it. This can be done by extension of the original covenant between the trade secret holder and the confidant or by extending it to a third party who is in possession of the trade secret under confidence. Contact our Trade Secret Litigation attorney Fort Lauderdale FL.
It is observed there has been a divergence in the concept of Trade Secrets among-st some of the recent decisions delivered in India. This has become more pronounced with a large number of foreign companies following the outsourcing model to reach India and utilize the cost benefits that India offers. It is important to note that while trade secret protection may be an important part of business strategy, there are some risks associated with its use. Companies must understand what they are protecting as a trade secret and should be ready to devote adequate resources to protect their trade secrets. It can also mean having a well-drafted confidentiality agreement or non-disclosure contract in place with those persons who will be working on or exposed to their confidential information.
The reasons for this new legislation are varied and complex, and therefore do not always clearly explain the need for a federal statute to address trade secrets. Understanding the scope of the Defend Trade Secrets Act (DTSA) as well as its deficiencies will be important for those in business and especially in highly-regulated fields such as pharmaceuticals and manufacturing. In these situations, the DTSA may have the potential to elevate trade secret protection to an entirely new level. Please contact our Trade Secret Litigation attorney Fort Lauderdale FL.
Confidentiality and non-solicitation covenants are often used in business transactions and to protect an arranger’s trade secrets. However, these agreements must be precisely-drafted and customized to the particular circumstances agreed upon by the parties. The foregoing is intended to only provide a general overview of the law on confidentiality and non-solicitations covenants. This article should not be viewed as comprehensive, nor does it constitute legal advice. Readers should speak with their own legal counsel when reviewing their own agreements.
