Are My Business’s Trade Secrets Really Secret?
Being a business owner is one of the most rewarding experiences a person can have. Running a company that’s yours, creating products or providing services people need or enjoy, and being your own boss is a big part of the American Dream. In some instances, businesses succeed because of something unique they keep secret from the rest of the world. Whether it’s Colonel Sanders’ herbs and spices or Coca-Cola’s secret formula, many businesses have a secret that gives them an edge over the competition.
Trade secrets are valuable for ensuring a business’s ongoing success and longevity. This is why these secrets are protected under Florida law. The State of Florida has also provided other legal resources to companies and business owners to protect themselves and privileged information. If you or a loved one is a business owner who wants to ensure your trade secrets stay secret, contact one of our team’s knowledgeable business attorneys to find out how to protect yourself best.
What Are Considered Trade Secrets?
Trade secrets are defined under the Florida Uniform Trade Secrets Act or FUTSA. FUTSA criminalizes the acquisition or distribution of trade secrets without consent. Additionally, trade secrets are further protected under Florida Statute 815.045, which allows businesses to keep secret information they would usually be required to disclose publicly.
Under FUTSA, a trade secret is any information, including but not necessarily limited to a formula, pattern, compilation, program, device, method, technique, or process that:
- Derives Economic Potential from Not Being Widely Known
- Derives Economic Potential from Not Being Easily Discovered or Replicated Independently
- Is Subject to Reasonable Efforts to Keep Its Secrecy
FUTSA is meant to cover a broad scope of potential trade secrets to protect businesses, their investors, and their employees. Because of this scope, whether or not something is considered a trade secret may be challenging to prove. An experienced attorney can help determine whether something is a trade secret and, if so, help you take appropriate legal steps to protect it and take action if the secret is compromised.
What Steps Can I Take to Protect My Trade Secrets?
FUTSA provides legal protection for trade secrets. However, there are additional steps you may want to take to provide yourself and your business an extra layer of security. These steps include, but are not necessarily limited to, implementing firewalls, requiring NDAs, and using proper labeling.
Firewalls can prevent individuals from hacking into your company’s computer system and illegally obtaining trade secrets remotely.
Meanwhile, NDAs, or nondisclosure agreements, are legal documents that prevent someone from revealing privileged information they obtained during their time with a company. As part of normal business operations, many employees will usually have access to trade secrets. NDAs can impose penalties for disclosing this information outside of the scope of their duties.
Proper labeling can also identify and protect trade secrets. Placing identifying labels such as “CONFIDENTIAL” or “SECRET” on physical documentation, such as folders and files, can classify the information as trade secrets. This further serves as a warning to individuals not to review or divulge the information.
What Can I Do if Someone Steals My Trade Secrets?
There are multiple legal options for businesses in the event a rival company, current or former employee, corporate spy, or someone else obtains and attempts to disclose or successfully discloses trade secrets.
If trade secrets have been stolen but not yet disseminated, you can ask a court for injunctive relief. This court order instructs a person not to engage in a specific course of forbidden action. Someone who violates an injunction can be held in contempt of court and face further criminal repercussions.
If trade secrets have been disseminated, you can sue the responsible parties for damages. Damages include any loss of income to you or your business from misappropriating your trade secrets. Additionally, damages can also include any profits made from the theft of your secret. If you can prove in court that the theft of your secret was a malicious act, you can also sue for punitive damages. Theft of trade secrets is considered malicious if it was done to profit another company or individual and harm you or your business.
In addition to civil remedies, stealing and disclosing trade secrets may be a felony punishable by fines or prison time. A business attorney can help you determine whether you can and should pursue criminal action.
These are only a few potential legal remedies for having your trade secrets stolen. In many cases, you can forestall ever having to go to court by taking appropriate steps and measures to ensure trade secrets aren’t compromised or stolen in the first place. One of our team’s attorneys can help you implement a framework in your company to provide for the best possible trade secret protection.
What Should I Do to Protect My Trade Secrets?
A valuable trade secret can be the key to a business’s success. If that secret is compromised, however, it could jeopardize your company. Businesses have several legal remedies at their disposal to ensure their trade secrets remain secret. Businesses also have many options to punish individuals who steal or reveal trade secrets, and to make an example of them to discourage future theft or attempted theft. If you or a loved one is a business owner in Florida, don’t hesitate to contact Brick Business Law to learn how you can protect your trade secrets.
The attorneys at Brick Business Law understand how valuable trade secrets are. With our own legacy of transparency, honesty, and fairness, we believe companies’ trade secrets deserve to remain secret. Our attorneys can review your business model and what you need to keep safe, and help you develop and employ a legal strategy for protecting what’s yours. With the team at Brick Business Law in your corner, your secrets can remain secret. Don’t take chances; make sure your company is secure. Contact an attorney at Brick Business Law at 813-669-0122 to schedule your strategy session today.
