Trade Secrets | Schecter Law, PA Blog

Posts Tagged ‘trade secrets’

What is Unfair Competition?

September 8th, 2010

By Mark Schecter | 1 Comment »

Competition We recently reviewed common disputes that both small and large businesses face.

Absent from the list of disputes is unfair competition, which happens when one business causes financial harm to another (likely a competitor) due to deceptive and wrongful behaviors and practices.

Unfair competition is a broad area and includes various torts (and criminal actions), but can usually be divided into two main categories:

(1)unfair trade practices; and

(2)civil actions arising from a business intent to confuse consumers about the source of services and/or products.

Types of Unfair Competition Claims

There are many types of unfair competition claims. Some of the more common include misappropriation of trade secrets by former employees, trademark infringement, libel, false advertising and false representation of services and/or products.

Misappropriation of Trade Secrets – This occurs when a former employee wrongfully divulges or threatens to divulge your business trade secrets to your competitors for some type of economic advantage. The Uniform Trade Secrets Act prohibits the divulging of trade secrets and can be used to secure an injunction against the former employee, damages (actual and punitive), and other civil remedies.

We have discussed trade secrets in detail on this blog. Make sure you check out our previous articles – here, here and here.

Trademark Infringement – An example of this type of tort is when a business uses the logo and/or name of another business to create a new product or service that deceives consumers as to its origin. This often leads to consumer confusion and can cause serious financial loss to your business.

Trade Libel – When a competitor knowingly spreads false information about the nature and quality of your products and/or services, they are engaging in trade libel.

While this article focuses only on torts, it should be noted that some claims of unfair competition can lead to criminal charges.

You can expect more information about civil actions arising from unfair competition and similar torts in the near future. In the meantime, feel free to contact our business attorneys if you are dealing with this issue. You can use this form to email or call us at (954) 779-7009.

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Tags: libel, trade secrets, trademark infringement, unfair competition
Posted in business, Corporation Law, small business, South Florida, trade secret | 1 Comment »

Protect Trade Secrets from Former Employees

July 27th, 2010

By Mark Schecter | 2 Comments »

protect trade secrets

When you hire an employee, there is a strong possibly that he or she will have access to and knowledge of trade secrets that you rely on in your business.

If there ever comes a time when the employee is no longer working with your company, you do not want those secrets to fall into the hands of your competition, do you?

What is a trade secret?

Florida law defines a trade secret as:

…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. See Fla. Stat. §688.002

Can you prevent a former employee from working with the competition?

According to Florida law, a former employee is free to take a job with any of your competitors when no agreement indicating otherwise is present.

In fact, the courts believe it should be expected in the absence of an agreement.

In Lee vs. Cercoa, the Florida court said… even in the absence of a non-compete agreement, a former employee is under a duty not to disclose any trade secrets (including skills, techniques or processes) in his new employment, whether for his own benefit or to the detriment of the previous employer.

If you can prove the employee has such knowledge, the court may be able to issue an injunction to stop the employee from working with the competition, but only if you can prove he/she either divulged or attempted to divulge trade secrets to your competitor.

Without this proof, you may not be able to take any action to protect your company’s trade secrets.

Contact our business lawyers today about your trade secret dispute. You can use this form to email or call us at (954) 779-7009.

Tags: former employees, trade secrets, Uniform Trade Secret Act
Posted in business | 2 Comments »