Companies traditionally generate proprietary information that needs to be protected from unauthorized use. A business might want to control the use of sales and marketing materials, client lists, and intellectual property, to name just a few. However, the intersection of trade secrets and social media has created new difficulties. Is the information contained in company social media accounts trade secrets or not? In this article, we will review that question and one court case that addressed it.
The Importance of Social Media to Business
A consumer’s use of a company’s social media often yields data the company can use to fuel digital marketing strategies. The internet, including social media platforms, provides a two-way form of communication that benefits both consumers and business owners.
In a recent study, researchers noted that 77% of consumers are more inclined to buy from a company they follow on social media. In fact, a majority of consumers:
- purchase more from the brands they know from social media, and
- use social media to research products and services.
But can social media endanger a company instead of promoting it? Have courts made any decisions relating to social media accounts held by companies?
An Important Case Regarding Company Trade Secrets
Cellular Accessories for Less, Inc. v. Trinitas, LLC involves company social media accounts and a former employee, David Oakes. Before Mr. Oakes left Cellular Accessories to start a competing business, he emailed customer lists and other proprietary information to himself. He also refused to stop using his LinkedIn account, which contained hundreds of contacts generated by his association with Cellular Accessories.
Generally, a customer list might be considered a trade secret if it required time and effort to compile. The LinkedIn account included contacts that Oakes had acquired while working for Cellular. The LinkedIn account user could control whether the contacts were public or private. The court found that the use of a company’s LinkedIn contacts could be trade secret misappropriation.
What you can take away from this is that some social media accounts could be proprietary information. You may be able to stop former employees from using the information found in those accounts. It may also be a good idea to set up a company-wide social media policy.
Are Your Company Social Media Accounts Vulnerable?
Review your social media if there’s any question that your accounts contain proprietary information.
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 tm. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. we represent clients throughout South Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, and surrounding communities.