Legal consequences for violation of Trade Secrets

05.08.08 (12:12 pm)   [edit]

A law blog with the heading, “The Price for Violation of Trade Secrets ”, have elaborated key points relating to trade secrets (including the violation thereof) as well as its implication in business. In particular, the blog relates that the key to a successful business or company lies in the formula, processes or designs that the company preserves.

In addition, the blog describe trade secrets having the following features:

1) it describes trade secrets as governed by state laws

2) it differs from other forms of intellectual creations like patent and copyrights

3) non-disclosure statement and non-compete clause can be an instrument for its preservation and protection

4) having no expiration dates

5) it is considered as intellectual creation

6) in cases of unwanted disclosure, a claim for compensation can be had against the perpetrators

On my part, I was obliged to provide an in depth exposition on the price for violation of trade secrets, not merely its concept.

Like any other cases of law violation, there are constitutive legal consequences involved for violating trade secrets. Aside from contractual breach in cases of wanton disclosures of protected secrets as contained in the non-disclosure agreements and non-compete clauses, violators can suffer several possible sanctions.

An injunction against the use of the information can be had against the perpetrator. In addition, it may also involved payment of a reasonable compensation in favor of the trade secret owner. In some instances, when the information is already out or disclosed somewhere, the court hearing the case can order the violator to pay a licensing fee to the owner of the protected information.

In the most offensive situations, a court can order the violators to pay exemplary damages.

These were just bits of the legal implication and consequences involved in violating trade secrets. In order to have more detailed account of the spectrum of trade secrets, an adeptly knowledgeable attorney shall be consulted.