Trade Secrets

What are Trade Secrets?

Trade secrets protect confidential business information that gives companies a competitive edge. This can include formulas, processes, methods, designs, customer lists, marketing strategies and other commercial information that is not in the public domain. Unlike some other forms of intellectual property rights, trade secrets are not registered and protection arises as long as the information remains secret and reasonable steps are taken to maintain confidentiality.

Once established, trade secrets give the owner the exclusive right to:

  • Use the confidential information in running their business;
  • Prevent unauthorised use or disclosure of the trade secrets by others; and
  • Take legal action against misappropriation of the trade secrets or breach of confidence.

What is Trade Secret Misappropriation?

Trade secret misappropriation occurs when a party acquires, uses, or discloses confidential business information without authorisation and in breach of a duty of confidence. This can include:

  • Unauthorised copying or sharing of confidential information;
  • Breach of confidentiality agreements by employees or business partners; and
  • Use of trade secrets by former employees in a competing business.

What are the Remedies for Trade Secret Misappropriation?

Courts may grant injunctions to stop the misuse or disclosure of trade secrets, order the return or destruction of confidential materials, and award damages or an account of profits to compensate for any financial loss suffered by the owner as a result of their trade secrets being misused. 

The wrongdoer may also be required to pay the legal costs incurred by the owner in bringing the claim.

What are the Defences to Trade Secret Misappropriation Claims?

There are various defences that a party can assert if accused of misappropriating trade secrets. The most significant include:

  • The information was already in the public domain or generally known;
  • The information was independently developed without access to the trade secret;
  • The alleged act did not breach any duty of confidence; and
  • Disclosure was required by law or in the public interest.
How can Samuels Solicitors help?

If misappropriation of trade secrets or confidential information has taken place, it is important to act quickly to protect your rights. Our experienced team can assist by preparing formal letters of claim to demand that any misuse ceases, applying for injunctions to stop ongoing misuse, and pursuing claims for damages to recover losses.

If you have been accused of misappropriation, our team can assist by preparing a letter of response, engaging in settlement discussions, and defending any court proceedings.

Contact us today for a free initial discussion with an expert lawyer.