Los Angeles Trade Secret Litigation Attorney

Los Angeles Trade Secret Litigation Attorneys Fight Theft and Unauthorized Use of Essential Business Information

Not all intellectual property is created equal. While some information, like patents, can be made public, other information’s value to an organization depends on its being kept confidential. 

Confidential information, known as trade secrets, is a popular target of theft and business espionage. Trade secrets may be ineffectively protected, increasing the risk that a business will lose this essential information to a thief or competitor. 

In trade secret litigation, a business and its experienced intellectual property attorneys can work to fight back when trade secrets are stolen or compromised. 

What are Trade Secrets?

A trade secret is information that is valuable because it’s not generally known or cannot be accessed by the public. The United States Patent and Trademark Office (USPTO) uses a three-element definition of a trade secret:

• The information must have “actual or potential independent economic value by virtue of not being generally known.” 
• The information must have value to persons or companies that cannot access it “legitimately.” 
• The business must make “reasonable efforts” to maintain the secrecy of the information. 

Only information that satisfies all three elements of this definition can become the subject of trade secret litigation. 

Examples of information that has been the subject of past trade secret litigation claims include:

• Information about customers and suppliers,
• Marketing strategies,
• New business models,
• Schematics or formulas for products whose market value depends on their uniqueness. 

Several laws govern trade secrets. These include the Economic Espionage Act of 1996 and the Defend Trade Secrets Act (DTSA) of 2016. 

How Trade Secret Litigation Differs From Other IP Cases

Many intellectual property claims fall under copyright, trademark, or patent law. Federal laws and some state laws outline what constitutes a breach of another’s rights under these areas of law. Typically, intellectual property claims are civil claims. 

Trade secret litigation is often a civil claim as well. In some cases, however, theft of a trade secret may also have criminal law implications. It is important to understand how civil and criminal law may overlap in a specific case to navigate both areas effectively. 

When a trade secret is stolen or taken improperly, the owner of the trade secret may choose to seek an injunction. An injunction is a court order prohibiting the party that took the trade secret from using or disclosing it until the case can be resolved. An injunction is often a first step in a trade secret case, intended to limit the potential damage to the trade secret’s owner while the case proceeds. 

The owner of the trade secret may also pursue compensation for any financial losses related to the theft or improper taking of the trade secret. Typically, a trade secret litigation claim has three elements, which the owner of the trade secret must prove:

• The subject matter is a “trade secret” as defined by the USPTO,
• “Reasonable” precautions were taken to prevent the subject matter from being disclosed to unauthorized persons, and
• The subject matter was “misappropriated or wrongfully taken.” 

Not all trade secrets are passed on to others by improper means. For example, reverse engineering, independent discovery, or disclosure due to a lack of proper reasonable precautions can all result in a trade secret landing in another’s hands. It’s important to consult with an experienced lawyer as soon as possible to determine what happened and address the loss of a trade secret. 

Other Intellectual Property Considerations

Not all intellectual property is a trade secret. Indeed, many forms of intellectual property cannot do their job if they’re not made publicly available. A trademark, for example, cannot alert customers to the source of a good or service if customers are not allowed to view the mark. 

Trade secrets often overlap with patent protection. Patent protection is granted in exchange for a detailed description and explanation of the patented invention, which is made publicly accessible through the United States Patent and Trademark Office. In exchange for this disclosure, the inventor can exclude others from making or using the invention for a defined period. 

When a patent expires, the information it contains is no longer protected by patent law. Patents do protect an inventor’s investment against others who might reach the same discoveries on their own, however. Patents also eliminate the need to maintain secrecy, which can reduce the burdens a company faces as it works to create and market its invention. 

Speak to an Experienced Los Angeles Trade Secrets Litigation Attorney Today

Trade secret litigation is a specialized area of law. An experienced attorney knowledgeable about trade secret law can help you understand your legal options and work to protect vital information. Talk to the team at Cohen IP today to learn more.