Protect Your Company’s Interests with the Help of a Florida Business Litigation Attorney Experienced in Trade Secret Litigation

Trade secrets are among many companies’ most valuable assets. While trade secrets are not eligible for registration in the United States, companies can protect their trade secrets through other means—and they can pursue litigation to protect these assets in court when necessary. We represent companies in trade secret litigation statewide, and a Florida business litigation attorney at our firm can help protect your company’s interests by all means available.

Depending on the circumstances, this may include seeking emergency relief. While there are limited exceptions, as a general rule, trade secrets derive their value from their secrecy. As a result, once a trade secret has been misappropriated, taking legal action immediately can be critical for preserving the owner’s exclusive rights.

Trade Secret Protections Under State and Federal Law

In Florida, trade secrets are protected under both state and federal law. At the state level, the Florida Uniform Trade Secrets Act (FUTSA) gives trade secret owners exclusive rights—and it gives them the ability to pursue legal action when necessary. The FUTSA defines a “trade secret” as follows:

“’Trade secret’ means information, including a formula, pattern, compilation, program, device, method, technique, or process that: (a) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (b) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.”

The FUTSA includes provisions for both injunctive relief and damages. Damages can include, “both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss.” The FUTSA also entitles trade secret owners to exemplary (or punitive) damages in cases involving “willful and malicious appropriation,” and it entitles trade secret owners to recover their attorneys’ fees in certain circumstances as well.

The Defend Trade Secrets Act (DTSA), 18 U.S.C. § 1836 et seq., establishes a cause of action for trade secret misappropriation in federal court—and it provides for remedies similar to those available under the FUTSA. While the federal definition of a trade secret is not identical to the definition under Florida law, the concepts are similar, and a Florida business litigation attorney at our firm can help you decide which type of claim it makes the most sense for your business to pursue.

When Can Trade Secret Owners Pursue Claims for Misappropriation?

Both the FUTSA and the DTSA provide trade secret owners with the right to file claims for misappropriation. So, what constitutes “misappropriation” of a trade secret?

1. Acquisition

Under Section 688.002(2)(a) of the FUTSA, a claim for trade secret misappropriation can be based on, “[a]cquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means.” Claims under Section 688.002(2)(a) can be used to pursue trade secret litigation against current and former employees, vendors, contractors, competitors, and other parties that have gained unauthorized access to (or unauthorized control over) trade secrets without proof of further disclosure or use.

2. Disclosure or Use

Under Section 688.002(2)(b) of the FUTSA, trade secret owners can pursue claims based on disclosure or use as well. Unauthorized disclosure or use of a trade secret constitutes misappropriation if the party involved:

• “Used improper means to acquire knowledge of the trade secret; or
• “At the time of disclosure or use, knew or had reason to know that her or his knowledge of the trade secret was: (a) Derived from or through a person who had utilized improper means to acquire it; (b) Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or (c) Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or
• “Before a material change of her or his position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.”

Here too, while not identical, the applicable legal principles in federal cases are similar. Due to the substantial value that trade secrets can hold (and the substantial investment that often goes into developing trade secrets), both state and federal law provide both strong protections to trade secret owners. The keys to success in trade secret litigation are: (i) being able to prove ownership; and, (ii) taking appropriate legal action as soon as possible.

Overcoming the Challenges of Protecting Trade Secrets in Litigation

One of the unique aspects—and unique challenges—of trade secret litigation is that companies must be able to prove the existence of their trade secrets without disclosing them publicly. This concern is addressed in the FUTSA and the DTSA. For example, the FUTSA requires courts to preserve owners’ secrecy by “reasonable means,” which may include, “granting protective orders in connection with discovery proceedings, holding in camera hearings, sealing the records of the action, and ordering any person involved in the litigation not to disclose an alleged trade secret without prior court approval.”

From preventing the spread of improperly disclosed confidential information to calculating the damages that trade secret owners are entitled to recover, trade secret litigation can present a variety of other challenges as well. As a result, experienced legal representation is critical. At Searcy Denney, we have the experience that trade secret owners (and those accused of misappropriation) need to protect their interests in court, and we are prepared to protect our clients’ interests by all means available.

Speak with a Florida Trade Secret Litigation Attorney at Searcy Denney

If you need to know more about pursuing (or defending against) a trade secret misappropriation claim in Florida, we encourage you to contact us promptly. To speak with a Florida business litigation attorney at Searcy Denney as soon as possible, please call 800-780-8607 or tell us how we can help online today.