Learning how to protect trade secrets in Texas is vital so that your organization can maintain its competitive advantage and market positioning. The question is, what’s the right way to engage in trade secret protection? More importantly, what are your legal options if someone misappropriates your company’s sensitive information and secrets?
In this guide to Texas trade secret protection, you’ll learn practical strategies for safeguarding your organization’s proprietary information. Here’s what you need to know.
The Role of Business Law in Protecting Trade Secrets
Trade secrets are protected under state and federal law. These laws address everything from the definition of trade secrets to your legal recourse if someone misappropriates sensitive business information that has economic value. However, these laws are complex, and proving that a misappropriation occurred can be incredibly challenging.
A business dispute lawyer can help you protect trade secrets, identify violations, and take swift legal action against the perpetrators. The Weisblatt Law Firm has decades of business dispute resolution experience and is here to help stand up for your rights. If you want to safeguard a trade secret or believe that another entity has misappropriated your work, our team can seek justice on your behalf.
Call (713) 666-1981 to obtain a free phone consultation with the Weisblatt Law Firm.
What Is a Trade Secret?
A trade secret can include any of the following information:
- A formula
- A pattern or compilation
- Programs
- Devices
- Methodologies
- Techniques
- Processes.
To be classified as a trade secret, the information must hold independent economic value by not being known by the public in general and not being easily ascertainable. Additionally, your business must have made reasonable efforts to maintain its secrecy.
If one of your trade secrets has been compromised, time is of the essence. Connecting with an experienced attorney allows you to prevent further misappropriation.
Trade secret disputes are complex to navigate, which is why you need an experienced business attorney on your side.
Weisblatt Law Firm has a proven track record of success and decades of business law experience. Contact our team for help with your trade secret disputes.
Strategies for Effective Trade Secret Protection in Houston
Here’s how to protect trade secrets in Texas.
Identify and Classify Your Trade Secrets
Start by auditing all of your important business information to identify anything that may qualify as a trade secret. Compare the information to the legal definition of a trade secret and ensure you are adequately working to conceal those secrets.
Keep in mind that not every piece of confidential information constitutes a trade secret, even if your business derives value from it. If you are unsure whether a piece of information qualifies, consult with an experienced business attorney for guidance. You should do your best to identify and safeguard anything that meets the definition of a trade secret due to the market advantage it provides your business.
Implement Robust Security Measures
Once you’ve identified trade secrets, it’s time to protect them. Here are some security measures to consider:
- Physical Barriers: Make sure that areas where sensitive information is stored are protected with physical measures.
- Digital Security: Employ advanced cybersecurity measures to prevent digital breaches of your secrets.
- Access Control: Limit who can access trade secrets and sensitive information.
While you cannot bring the risk of misappropriation to zero, you can implement safeguards to address the most common vulnerabilities. These efforts not only discourage theft but also meet the legal requirement for making reasonable efforts to keep the information secret.
Use Non-Disclosure Agreements (NDAs)
Generally, at least a few employees have to know about your trade secrets. Whenever sharing trade secrets with team members or contractors, require them to sign NDAs. These legal contracts obligate them to maintain confidentiality and provide you with legal recourse in case of unauthorized disclosure.
Hire an attorney to review your NDAs to ensure they are legally enforceable. NDAs must include detailed language that safeguards your business and its secrets without revealing any protected information. Your contracts will also need dispute resolution clauses that lay out the course of action you will take if someone violates the agreement.
Create a Comprehensive Policy
Create a written policy that outlines the procedures for handling confidential information. Break things down in clear terms so that everyone understands what is expected of them and how they can do their part to protect confidential information.
The policy should also lay out penalties for violations. While you don’t want to resort to scare tactics, you do want employees to understand that there are very severe consequences for exposing sensitive company information.
Educate and Train Your Team
Take time to educate your staff on the importance of protecting company secrets and other data. The training should cover topics such as:
- Creating strong passwords
- Good computer security habits (i.e., locking a device before walking away)
- Company policies
- How to identify phishing attempts
- How to dispose of sensitive documents.
Don’t rely on a once-a-year training. Provide your team with refresher education periodically throughout the year so that data security remains top of mind.
Monitor and Enforce Protection Measures
Regularly monitor access to trade secrets and any other sensitive information. If you have a large in-house IT team, coordinate with them to implement modern network and access monitoring processes. If not, consider partnering with a reputable IT service provider that can assist with monitoring and access control.
Periodically audit your security measures and identify any weaknesses. Fix these deficiencies and continually work to make your secrets more secure.
Plan for Employee Turnover
People are eventually going to leave your company. Employees who have had access to sensitive information or trade secrets are one of the biggest risks to your market competitiveness. Conduct exit interviews to remind departing team members of their confidentiality obligations and ensure they return all company property.
You could also implement non-compete agreements to prevent former employees from joining your competitors. You should consult with an employment attorney before implementing non-compete contracts to ensure your documents are legal and enforceable.
What Are My Options if a Trade Secret Has Been Misappropriated?
According to Texas Civil Practice and Remedies Code chapter 134A, a misappropriation occurs if:
- A person acquired the secret by improper means
- Someone disclosed or used a trade secret of another without express or implied consent of the owner.
If someone has misappropriated one of your trade secrets, you can:
- Seek a court order to prevent further use or disclosure
- Pursue damages for actual losses
- Seek money to cover your attorney fees.
However, time is of the essence in trade secret disputes. You need experienced legal representation that will help you act swiftly to protect your valuable information.
When Should You Talk to a Business Attorney?
If you need help with Houston trade secret protection, it’s time to speak to a business lawyer. The Weisblatt Law Firm can proactively help protect your trade secrets or file a misappropriation claim on your behalf. Don’t wait. Act now to protect what’s yours.
Protect Your Trade Secrets With Weisblatt Law Firm
You’ve poured countless resources, hours, and energy into developing trade secrets that give your business a competitive edge. Now, it’s time to protect them. Whether you want to be proactive about safeguarding your trade secrets or need help handling a dispute, the Weisblatt Law Firm can help.
Attorney Weisblatt has decades of experience practicing business law. He and the firm stand up for what’s right and protect your valuable information.
Do you have questions about trade secret protection in Houston? Call the Weisblatt Law Firm at (713) 666-1981 for a free phone consultation.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
