What Is The Texas Uniform Trade Secrets Act?

In 2013, the Texas Uniform Trade Secret Act (TUTSA) became a law in Texas. In essence, it put into writing what had been the common law in Texas regarding the misappropriation of trade secrets. At this point, the act has been adopted by most states.

What Is Misappropriation Of Trade Secrets?

Misappropriation of trade secrets occurs when a current or former employee discloses or uses an employer’s trade secret information. The definition of a trade secret can be quite broad, and a lawyer has to prove or make a showing that the information that they are alleging was taken without their permission was an actual trade secret.

What Is Injunctive Relief?

Injunctive relief is when a plaintiff—in addition to filing a lawsuit—requests fairly early on in the lawsuit that the defendant be restrained from doing something. For example, a former employee or a former employee’s new employer might be restrained from using the former employer’s client list or pricing information. In other words, it is a request for the judge to make a decision early on in the case with regard to whether or not there has been a breach of a written agreement between the employer and employee or a breach of TUTSA. It also aims to determine what type of protection the employer is seeking in order to reduce future damages.

What Do Plaintiffs Need To Prove In Trade Secret Misappropriation Cases? How Can They Demonstrate That They Took Reasonable Measures?

The first thing that a plaintiff needs to prove in a trade secret misappropriation case is that the information disclosed or used qualifies as a trade secret. This can be done by showing that the defendant was expected to protect the secrecy of the information. A plaintiff must also show that a current or former employee used the trade secret information for their own benefit or for the benefit of a third party. If the plaintiff or former employer can prove that there have been damages as a result of trade secret information being shared or used, then they might be entitled to compensation for those damages. For example, an employer may be entitled to receive lost profits or royalties.

What Are Some Safeguards To Trade Secret Misappropriation?

One safeguard to trade secret misappropriation is to have an agreement in place that details not only what the trade secret is, but also what the employee is allowed or not allowed to do with it. This could be a non-disclosure agreement, a non-compete agreement, or a non-solicit agreement; the ultimate goal is to have a written document in which the employee acknowledges specific trade secrets or categories of trade secrets and details what they can and cannot do with this information.

Beyond written agreements, computer protection measures can be very helpful in preventing the misappropriation of trade secrets. For example, a company may choose to have certain files password protected and limit the use of personal email accounts, flash drives, and outsourced hard drive discs on which someone could download protected documents. It is also important to monitor all computer transactions, have robust policies and procedures in place that outline what employees can and cannot do, and implement training to inform employees on why it’s important to keep trade secrets confidential. If employees, vendors, or third parties have access to trade secrets through joint venture agreements, then it’s best to have a written agreement that details what they can and cannot do with that information.

For more information on Texas Uniform Trade Secret Act, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (281) 277-3066 today.