Trade secrets can represent some of a company’s most valuable assets. Customer information, pricing strategies, proprietary processes and confidential technology may give a business an advantage over competitors. When a former employee takes this information to a competing company, the consequences can be serious.
If you operate a business in Atlanta, understanding your rights can help you respond when confidential information leaves your company.
What qualifies as a trade secret?
Not every piece of business information qualifies as a trade secret. Generally, the information must have economic value because it is not generally known and the business must take reasonable steps to keep it confidential.
Examples may include:
- Proprietary formulas or processes
- Customer or vendor information
- Confidential pricing data
- Business strategies
- Source code or technical information
The specific circumstances determine whether information receives legal protection.
What if a former employee takes the information?
A former employee may violate legal obligations by improperly obtaining, using or disclosing protected information. The situation can become particularly serious when the employee gives the information to a competitor or uses it to solicit customers.
The employer may need to act quickly to preserve evidence and limit further disclosure.
Important evidence may include:
- Employment agreements and confidentiality provisions
- Emails and messages
- Computer or network access records
- Download histories
- Evidence showing how the information was used
What legal remedies may be available?
Depending on the circumstances, a business may pursue remedies designed to stop the misuse of confidential information and recover losses.
Potential remedies can include court orders preventing further disclosure or use of the information and financial damages when the business can establish a compensable loss.
Federal and Georgia law may apply, depending on the facts and the nature of the information involved.
Protect your company’s confidential information
A suspected trade secret theft can affect your competitive position long after an employee leaves. Acting promptly can help preserve evidence and reduce the risk of further disclosure.
If a former employee took confidential business information to a competitor in Atlanta, an experienced business litigation attorney can evaluate the circumstances, explain your legal options and help protect your company’s interests.