Trade secret litigation is how a business stops another party from using its confidential information and recovers what the misuse cost. Texas protects trade secrets under the Texas Uniform Trade Secrets Act, and the federal Defend Trade Secrets Act provides a parallel claim in federal court.
These disputes often start when a former owner opens a competing company, a contractor or sales representative leaves with customer data, or a business partner keeps using shared information after the relationship ends. They often travel with claims under a confidentiality or non-compete covenant.
Claims under the Texas Uniform Trade Secrets Act and the federal Defend Trade Secrets Act.
Claims that a competitor wrongfully disrupted a contract or a likely business relationship.
Claims built on dishonest business conduct that interfered with a company's ability to do business.
Representing businesses accused of taking or using another company's information.
Almost any business information can qualify, including customer lists, pricing, financial data, formulas, designs, software code and processes, if it meets two tests:
The owner took reasonable steps under the circumstances to keep it secret, such as confidentiality agreements, limited access and passwords.
The information is valuable because others don't know it and can't readily obtain it through proper means.
Independent development is a proper means, and so is reverse engineering a product that was lawfully acquired, unless a contract or other law prohibits it. Our article on intellectual property basics explains how trade secrets fit with other protections.
Court orders that stop actual or threatened misappropriation.
The owner's actual loss plus the wrongdoer's unjust enrichment, or a reasonable royalty.
An additional award for willful and malicious misappropriation.
Available to the prevailing party when misappropriation was willful and malicious or a claim was brought in bad faith.
The federal act also allows a court to order property seized without notice, but only in extraordinary circumstances.
Interference with an existing contract requires willful and intentional interference that causes a loss. Interference with a prospective business relationship also requires conduct that was independently tortious or unlawful. Texas treats unfair competition as an umbrella for business conduct contrary to honest practice, and the claim depends on proving an underlying wrong.
We pin down what was taken and whether it qualifies as a trade secret.
Device, email and cloud account records often show what was downloaded, copied or sent.
A cease-and-desist letter can stop the misuse and secure the return of the information.
When the misuse is ongoing, we ask the court for a restraining order or injunction.
Many cases end with an agreed injunction or settlement, and the rest go to trial.
Have a question that isn't answered here? Call us at (817) 631-8842 or send a message.
Ask a QuestionYes. Texas law expressly includes lists of actual or potential customers or suppliers in its definition of a trade secret. The list still must be kept confidential and must not be readily ascertainable through proper means, so a list copied from public directories is harder to protect than one that adds pricing and buying history.
Often both. A claim under the Texas act can be brought in state court, or in federal court alongside a federal claim. The federal act applies when the trade secret relates to a product or service used in, or intended for use in, interstate or foreign commerce. The remedies are similar, but the choice of court affects speed and procedure.
Both the Texas and federal statutes set a limited time to sue, which generally runs from when the misappropriation was discovered or reasonably should have been discovered, and continuing misuse counts as a single claim. Tortious interference claims have their own deadline, so a business that suspects misuse should act promptly.
Preserve documents right away, and don't delete files or accounts. Common defenses include that the information wasn't secret, wasn't reasonably protected, or was developed independently or reverse engineered. Texas and federal law allow a court to award attorney's fees against a party that brings a misappropriation claim in bad faith.
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