Many businesses have a list of vendors or suppliers they routinely use in the course of business. This vendor list is often built over years and identifies suppliers known for providing quality products at good value. Arguably, this information qualifies as a trade secret because it was developed through years of trial, error, and financial investment. In a separate...
Continue ReadingWhat is a Trade Secret Under Texas Law? Every business has some amount of confidential and proprietary information that it does not want its competitors to know. When someone uses a business’ confidential information without consent or threatens to do so, filing a claim for misappropriation of trade secrets is one way for a business to protect its information. However, in...
Continue ReadingIn Texas, a business and/or employer can bring a claim for misappropriation of trade secrets if a competitor or employee acquires a business’s trade secrets improperly or uses them without permission. Tantamount to establishing a misappropriation of trade secrets claim is establishing that a trade secret, in fact, existed. Under Texas law, a “trade secret” is defined as follows:...
Continue ReadingAs an employer, your trade secrets are the heart of your business. Knowing every manner available to protect those trade secrets could make a big difference in future of your business. A claim for misappropriation of trade secrets is one way an employer can protect its interests. Under Texas law, a misappropriation of trade secrets claim not only can...
Continue ReadingMany aspects of modern society are dependent upon computers. And computer fraud and abuse has become prevalent. For employers, it is important to have an employee computer access policy to protect your sensitive information. As an employee, knowing the limits of your authorized access is essential to avoiding adverse employment action. The Computer Fraud and Abuse Act is a...
Continue ReadingMisappropriation of trade secrets is a proper basis for a court to order a temporary injunction; however the language in the injunction must be limited to prevent it from becoming blanket prohibition on competition. In Reliant Hosp. Partners, LLC v. Cornerstone Healthcare Group Holdings, Inc., 374 S.W.3d 488 (Tex. App.—Dallas 2012, pet. filed), Cornerstone Healthcare Group (“Cornerstone”) brought suit...
Continue ReadingA decision from the Arizona Court of Appeals illustrates precisely why employers must exercise care when choosing to classify particular company information as trade secrets. Reversing the lower court’s grant of a counterclaim for misappropriation of trade secrets, the court in Calisi v. Unified Financial Services, 2013 WL 1490465 (Az.Ct. App. 2013) determined that the employer failed to demonstrate...
Continue ReadingGeorgia employers cannot bring an independent claim for violation of the Georgia Trade Secrets Act based on the inevitable disclosure doctrine in the context of non-compete litigation. This was the conclusion of the Georgia Supreme Court in Holton v. Physican Oncology Servs., LP, 2013 WL 1859294 (Ga. 2013). The Court, in explaining its decision, noted the generally unsettled nature...
Continue ReadingIn the oil and gas industry, certain well construction costs are known as “complex services.” Traditionally, oil and gas companies have used paper records to track and pay costs. Company A developed software that allowed oil companies to plan, procure and pay for complex services online. Company A entered into an agreement with a software company, Company B, to...
Continue ReadingWhether an injunction should issue in a particular case involves a fact-intensive analysis. A recent opinion by the Dallas Court of Appeals demonstrates how the courts may conduct this analysis in cases involving claims for misappropriation of trade secrets and violations of the Texas Theft Liability Act. A broker/dealer investment services company hired an employee as a Vice President....
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