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When can you file a trade secret claim?

On Behalf of | May 11, 2022 | Business Litigation

Doing business in the state of Texas can expose you to the occasional round of litigation. However, one of the most contentious topics that can reach the ears of the court is that of trade secret disputes. If you think that someone is stealing your secret formula or other info, you have the right to file a suit.

Your secret info needs to stay secret

Your company may have a number of secrets that it keeps hidden from rivals in the industry as well as the public at large. These are the secrets by which you manufacture your products. If a competitor should somehow discover your secret formula, this will be the basis for you to unleash a round of commercial litigation.

Your secrets give you a competitive advantage

Part of the reason why you want your secrets to stay undercover is because they give you an edge over your rivals. This may be a secret formula that gives your soda or hamburger a flavor that the public immediately associates with you. If your competitors were to gain these secrets, you would lose your uniqueness.

You are presumably not in the habit of going on social media and giving out your secret to anyone who cares to hear it. For this reason, it is understood that your secret was probably discovered through illegal means. This may mean hacking, bribing, or corporate espionage, all of which can result in a lawsuit.

Your info is under lock and key

Your trade secrets can and should be considered part and parcel of your store of intellectual property. To this end, they should be kept in a place that is safe, secure, and well out of the public eye. The reason that your secrets are secret is because you make a reasonable effort to protect them.

This means that the only way they could have gotten out into the public eye is through oversight, neglect, or willful malice. All of these scenarios can be the basis for a lawsuit for which you will first file your trade secret claim.