Trade Secret Violations

Employees that leave and take confidential and proprietary information with them can have detrimental and significant impacts on a business.  Our Trade Secret attorneys for businesses have substantial experience in resolving trade secret matters and litigating trade secret cases when necessary.  

A trade secret is anything you use in your business that gives you an advantage over your competitors. A trade secret can be a recipe, process, customer list, supplier list, vendor list, formula, strategy, technique or device that your competitors do not know, do not have, and cannot use. Sometimes it is referred to as “know-how.” Examples of trade secrets include the formula for Coca-Cola, the process for making a car part, the recipe for a cookie, or a list of customer or potential customers. 

Trade secrets are governed by both state law and federal law.  The Ohio Uniform Trade Secrets Act (OUTSA) and the Federal Defend Trade Secrets Act are similar and generally analyzed the same by Ohio and Federal Courts.

What is is Trade Secret in Ohio?

In general, a trade secret has three parts: (1) information (2) economic value from not being generally known by others, and (3) reasonable efforts have been taken to protect the trade secret. Ohio Courts look at 6 factors to determine if information or documentation is a trade secret: 

• The value of the information to your business and your competitors 
• Whether the information is known outside of your business 
• Whether the information is known only to your employees and people in your business 
• The amount of money you have spent in developing the information 
• The difficulty for others to get or create the information 
• The actions you have taken to guard the secrecy of the information 

Our Ohio Trade Secret lawyers have experience with how Courts weigh these factors and how to best present argument in favor of protection.  A trade secret is entitled to protection for as long as it is kept a secret. If the information is distributed to the public, it is no longer confidential and loses its trade secret protection forever. 

If someone steals or uses your trade secret without your permission, it is called a “misappropriation” of trade secret. Not all uses of trade secrets are considered misappropriation. In order to be liable for misappropriation, the person who uses your trade secret information must have either:  1) obtained the information improperly, such as through corporate spying or 2) used the trade secret, which arose from a breach of confidence, such as where trade secret information was obtained through an employment relationship. Ohio and Federal law also requires that the use of the trade secret be continuous in the operation of a business, not a one-time thing. 

If a business files a lawsuit, the court can prevent further disclosure of your trade secret with an injunction. The business can also seek money damages for any financial losses  suffered due to the misappropriation and your business may be able to recover the profits the individual or business obtained with the stolen trade secret. 

If you believe a current or former employee or business has misappropriated trade secrets from your business, contact Mansell Law for a consultation with experience Trade Secret lawyers in Ohio.