Trade Secrets Law

Trade Secrets Protection and Litigation

Employee Agreements | Defending Misappropriation Claims

When a company's vital information or innovation falls into the hands of a competitor, that rival can gain an important business advantage. In the information age, protecting trade secrets is critical to maintaining a competitive edge. But what constitutes a trade secret?

The Law Office of David Barrett in Sacramento, California, represents clients on both sides of trade secrets litigation. Our attorney enforces confidentiality/non-disclosure agreements, or defends clients accused of misappropriation. To find out your legal standing, contact us at 916-440-0233.

Trade Secret Protection

A trade secret is information or a tangible asset which (a) has value to competitors, and (b) the business has made a reasonable attempt to keep it hidden. Examples include:

• A recipe or formula
• A manufacturing process or product innovation
• Plans or designs (circuitry, product specs)
• Customer lists and databases
• Software and computer code
• An employee's expertise in the above

About 80 percent of trade secret litigation involves employees with insider knowledge who join a competitor or start their own company. California law is generally hostile to non-compete agreements, which prohibit ex-employees from working for or starting a competing business. Often, the agreements are defeated as too restrictive for a highly mobile work force.

Non-disclosure agreements (confidentiality agreements), are enforceable in California. They prevent the misappropriation of sensitive information for financial gain — selling secrets to a competitor or using trade secrets against the former employer. In representing the aggrieved company, lawyer David Barrett demonstrates that the theft had value to the competing business and that the information or technology was indeed secret. We bring suit for breach of contract, seeking damages equal to our client's lost revenue and/or profits gained by the rival. Because circumstantial evidence is often times the only evidence of trade secret misappropriation, it is critical to utilize electronic discovery techniques to win your case.

Defending Misappropriation Claims

In defending an ex-employee or rival corporation, the Law Office of David Barrett seeks to prove that:

• The information had no value to the competitor
• It was already in the public domain and in use by others
• The "trade secret" is commonsensical and not special
• The company made no real effort to keep it secret

If you believe a competitor has misappropriated trade secrets, or if you or your company is accused of violating a non-disclosure agreement (NDA), contact experienced trial lawyer David S. Barrett through this Web site to discuss your rights and legal options. Or, call 916-440-0233.