Trade secrets are a vital component of many businesses, providing a competitive edge through unique processes, formulas, or information that are not publicly known. Misappropriation of trade secrets occurs when someone acquires, discloses, or uses a trade secret without the consent of the owner, often through improper means. Under North Carolina law, as well as federal statutes like the Defend Trade Secrets Act (DTSA), misappropriation is defined as the acquisition of a trade secret by someone who knows or should know that it was obtained through improper means, or the unauthorized disclosure or use of a trade secret.
To successfully plead a case of trade secret misappropriation, a plaintiff must identify the trade secret with sufficient particularity. This means providing enough detail to allow the defendant to understand what they are accused of misappropriating and for the court to determine if misappropriation has occurred or is likely to occur. The plaintiff must also demonstrate that reasonable efforts were made to maintain the secrecy of the information, which is a critical factor in establishing the existence of a trade secret.
Defenses against claims of misappropriation include proving that the trade secret was acquired through independent development, reverse engineering, or from someone who had the right to disclose it. These defenses highlight the importance of businesses taking proactive steps to protect their trade secrets, such as implementing confidentiality agreements and security measures. Understanding the legal framework surrounding trade secrets can help businesses safeguard their valuable information and navigate potential legal disputes effectively.
Determining whether a misappropriation of trade secrets has occurred requires an analysis specific to the facts of each case. If you have any questions about misappropriation of trade secrets, please call Lord & Lindley, PLLC, at (704) 457-1010. For more information regarding our firm, attorneys, and practice areas, please visit our website at www.lordlindley.com.