What Other Precautionary Measures Can Be Taken To Safeguard Trade Secrets?

Labeling confidential documents is an important measure to take in order to safeguard trade secrets. Oftentimes, employers fail to identify the documents that contain trade secret information, and then accuse their employees of misappropriation when those documents or the information they contain are used or disclosed. This is a big hole that employers often don’t address until after the information has already been disseminated to their employees. When these matters are brought to court, the challenge is in identifying whether or not the employee actually knew that the information should have been protected.

It is crucial to limit the number of people who have access to protected information. If everyone in a company has access to the customer lists and pricing information, then it will be less likely that a court will deem that information a trade secret. This is why it is important to limit access to individuals who have a need to know that information and actually use it on a frequent basis. Securing the premises with a physical safe in order to lock away sensitive documents can help limit who has access to them, and doing this would certainly strengthen the case for proving that certain information was indeed a trade secret.

Does Texas Law Subject People Who Misappropriate To Criminal Penalties?

Under Texas Penal Code 31.05, there is a statute that addresses the criminal aspects of trade secret misappropriation cases. In addition, there are general theft laws that could apply to these cases.

If Criminal Proceedings Are Moving Forward, Is That Enough? Must I Proceed In a Civil Matter?

In trade secret misappropriation cases, criminal proceedings are the exception rather than the rule. We have found that our own business clients will try to seek prosecution in these cases, or are on the receiving end of threats of criminal prosecution. More often than not—and this might differ between jurisdictions—prosecutors in the local Houston area deem these matters to be civil in nature. With that said, even if a criminal proceeding were moving forward, the burden of proof and the facts involved would be different than other criminal cases. If a criminal proceeding has started in one of these cases, it doesn’t necessarily mean that a civil judge will find that someone has violated TUTSA or a written agreement.

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