How to Report Someone for Violating Your Small Business Trade Secrets

Posted by Anonymous , 9/4/2007 Tags:ReportSomeoneViolatingSmallBusinessTradeSecrets
Post By :
Anonymous
Rate:
Vote

How to Report Someone for Violating Your Small Business Trade Secrets

Introduction

Almost all businesses have important secrets that give them a competitive edge. Keeping these trade secrets confidential can be crucial to the success of the company, as a violation of them can result in financial losses and is a considered a crime. That's why knowing how to report someone who has violated your trade secrets is an important aspect of running a small business.

Instructions

Difficulty: Moderately Easy

Know What Constitutes a Trade Secret

Steps

1

Step One

Think about what makes your business successful. A trade secret can refer to a marketing strategy or plan, product, service, software program, idea or process. It can also include a price list or list of customers.
2

Step Two

Consider what competitive advantage a possible trade secret gives you. In order for something to be considered a trade secret, you have to be able to prove that it provides you with a competitive advantage.
3

Step Three

Determine what ideas you generally keep from others. If you want to pursue action against someone for violating a trade secret, you must be able to prove that you attempted to protect it from being discovered.
4

Step Four

Know that patents, copyrights and trademarks are legally recognized, registered property, whereas a trade secret is not disclosed information. In addition, there is no time limit on how long a trade secret is protected.

Prevent Someone From Violating Your Trade Secrets

Steps

1

Step One

Limit the access to the trade secret. Maintain security by keeping the secret locked up or labeling files or paperwork associated with the trade secret as confidential. If the secret is stored on a computer (such as a customer mailing list), restrict access to the database and change the password regularly.
2

Step Two

Have all employees, investors or anyone else who comes in contact with your trade secret sign a legally-binding nondisclosure agreement that makes them liable for revealing the trade secret.

Report Someone for Violating a Trade Secret

Steps

1

Step One

Hire a lawyer who specializes in intellectual property or copyright law to handle a violation of your trade secrets.
2

Step Two

Report someone by asking a court to issue an official injunction against the person who has violated your trade secrets. You can also file an injunction against a company or other small business that may have received the information.
3

Step Three

Seek financial compensation if the violation of your trade secret resulted in a loss of profits. Even if it didn't, you can pursue criminal charges.

Overall Tips & Warnings

  • Reporting someone for violating your trade secret can be a fairly time-consuming process. Budget time to collect evidence and proof before making your accusation. If the case proceeds to court, you will also need to spend significant time working with your lawyer and presenting your case before a judge.
  • Falsely accusing someone of a trade secret violation can leave you vulnerable to a countersuit that may involve paying compensation for legal fees and damages.

Overall Things You'll Need

  • Lawyer familiar with intellectual property or copyright law
Tools: |