Losing control of your trade secrets can seriously affect a business. For example, you might realize that a competitor has been picking off your clients for some time. But it’s no coincidence that you targeted the same clients. Instead, you learn that the competitor misappropriated your client list and other marketing materials. The Florida Uniform Trade Secrets Act addresses situations like this, where someone has used a company’s confidential information without permission.
What Is the Uniform Trade Secrets Act?
The Uniform Law Commission (ULC) developed a general Uniform Trade Secrets Act. State legislatures have gradually been adopting the ULC version or revised versions that better reflect their intentions. Currently, 48 states have done so, including Florida.
Florida’s Uniform Trade Secrets Act is Chapter 688 of the Florida Statutes and applies to Florida businesses.
How It Applies to Your Trade Secrets
Your company’s trade secrets may fall under the protection of the Uniform Trade Secrets Act. The law defines a trade secret as information that:
- Has economic value because it is not generally known or easy to access by other people who could also derive economic value from it, and
- Someone has protected its secrecy or take reasonable efforts at protection.
Your business trade secrets might not be covered if someone discovered them through lawful means. For example, a competitor might use reverse engineering to determine your manufacturing process or design. Also, if a company does not try to protect its proprietary information, using it without permission is not always considered a violation of the Uniform Trade Secrets Act.
Remedies Under the Act
Misappropriation of trade secrets can be a tort claim or a criminal charge, or both. If you find the someone is using your trade secrets, you might be able to stop them by going to court.
For example, you and your attorney might ask a court for injunctive relief. The judge may order the violator to stop using your trade secrets.
You also might be entitled to damages for:
- Actual loss caused by the misappropriation, and
- Unjust enrichment credited to the unauthorized use, and
- Exemplary damages if the violator maliciously misappropriated trade secrets.
Other provisions in the Uniform Trade Secrets Act relate to preserving secrecy during litigation. Generally, court documents are public records. When trade secrets are involved, the court might grant protective orders, hold in camera hearings, and seal court records.
Will the Uniform Trade Secrets Act Affect Your Business?
Possibly. We encourage you to protect your company’s proprietary information and use non-disclosure agreements when you have to share information with others. Also, watch for signs of trade secret misappropriation and take immediate steps to address it.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.