How Can an Orange County Trade Secret Attorney Help?
In our experience, claims for violation of noncompete covenants and trade secret clauses often arise as counterclaims when a business purchaser or former employer is sued for breach of sale or severance terms. Sometimes the action begins with a claim for damages related to a non-competition agreement, and the broader contract issues are raised by the defendant.
While some litigation over these issues reflects a genuine threat to the value of a company’s acquisition of a business division, customer list or proprietary processes, other trade secrets claims represent weak claims intended primarily to scare an adversary – often a former colleague or employee – into backing away from substantial contract or business tort allegations.
Either way, the Orange County business lawyers of Callahan & Blaine know how to analyze, litigate, and resolve business disputes that involve trade secrets or non-competition claims. In most situations, especially when we’re representing an individual alleged to have violated noncompete or data confidentiality terms, we can help you find insurance coverage to support your defense while pursuing your own affirmative claims.
Our investigation of trade secrets and severance claims will take us wherever the evidence leads us. In some cases, that can include complex federal antitrust or California unfair business practices claims that can dwarf the amount at stake in the original litigation.
What Qualifies as a Trade Secret in California?
Under California law, a trade secret is information that derives independent economic value from not being generally known and is subject to reasonable efforts to maintain its secrecy. Trade secrets can encompass a wide variety of business information that companies rely on for competitive advantage.
Common examples of trade secrets include:
- Customer lists and contact information that took substantial time and resources to develop
- Manufacturing processes and techniques that provide efficiency or quality advantages
- Proprietary software code and algorithms that power unique digital tools
- Chemical formulas and recipes that competitors would value
- Marketing strategies and business plans that reveal future initiatives
For information to qualify as a trade secret in California, businesses must take proactive steps to maintain its confidentiality. This often involves implementing comprehensive policies, requiring employees to sign non-disclosure agreements, restricting access to sensitive information, and clearly marking confidential materials.
Key Trade Secret Protection Strategies for Orange County Businesses
Protecting your company’s trade secrets requires a multi-faceted approach combining legal documentation, security measures, and ongoing monitoring. The best protection strategies focus on prevention rather than litigation.
Strong Confidentiality Agreements
Confidentiality and non-disclosure agreements form the foundation of trade secret protection. These legally binding contracts establish clear expectations regarding the handling of proprietary information and provide legal recourse if violated.
Well-drafted confidentiality agreements should clearly identify what constitutes confidential information, specify permitted uses, establish the duration of confidentiality obligations, and outline remedies for breach. Our attorneys can draft customized agreements that address your specific business needs while ensuring enforceability under California law.
Employee Policies and Training
Your employees represent both your greatest asset and potentially your greatest vulnerability when it comes to trade secret protection. Implementing comprehensive policies and providing regular training significantly reduces the risk of inadvertent disclosures.
Effective employee education programs should cover:
- Clear identification of what constitutes confidential information
- Proper handling procedures for sensitive materials
- Security protocols for electronic and physical documents
- Reporting procedures for suspected violations
- Consequences of unauthorized disclosures
Regularly updating these policies and conducting refresher training ensures continued compliance as your business evolves and technology changes.
Digital and Physical Security Measures
In today’s digital environment, implementing robust security measures is essential for protecting valuable trade secrets. Comprehensive security protocols should address both electronic and physical vulnerabilities.
Digital security best practices include implementing access controls based on need-to-know principles, utilizing encryption for sensitive data, requiring strong authentication methods, monitoring system access, and maintaining secure backup procedures. Physical security measures should restrict access to facilities containing sensitive information, implement proper document storage and destruction protocols, and limit the removal of confidential materials from secure areas.
Enforcement and Remedies for Trade Secret Misappropriation
When trade secret misappropriation occurs, swift and decisive legal action is often necessary to protect your business interests. California’s Uniform Trade Secrets Act provides powerful remedies for businesses that can prove unauthorized acquisition, disclosure, or use of their proprietary information. Understanding these enforcement options is crucial for effectively responding to potential violations.
Available remedies for trade secret misappropriation include injunctive relief to prevent further unauthorized use, monetary damages to compensate for actual losses, disgorgement of the defendant’s profits gained through misappropriation, and in cases of willful and malicious misappropriation, exemplary damages up to twice the amount of actual damages. In exceptional cases, prevailing parties may also recover reasonable attorney fees.
Speak With a Trade Secret Lawyer in Orange County, CA
Learn more about our creative approach to trade secrets litigation in Orange County and Southern California. Contact an Orange County trade secret attorney at the AV-rated* law firm of Callahan & Blaine in Santa Ana.
