What is a trade secret violation?

A trade secret violation is when a person or company inappropriately accesses or discloses confidential information that is economically valuable and has been kept secret. In Texas, trade secrets are protected by the Texas Uniform Trade Secrets Act. Under this act, any person or business that discloses, obtains, or uses trade secrets without the owner’s authorization can be held liable for a trade secret violation. Examples of trade secrets may include customer lists or databases, marketing or business plans, formulas, processes, or manufacturing methods. Trade secrets may also include information such as methods of operation, pricing, or accounting practices. If an employer believes their trade secret has been misused or stolen, they can take legal action. Generally, the first step would be to file a civil lawsuit against the person or company that acquired or misused the trade secret. This can result in damages, including legal fees, loss of competitive advantage, and even punitive damages. In some cases, criminal charges may also be filed when a trade secret violation is suspected. In Texas, a person found guilty of trade secret theft can face up to two years in jail and a fine of up to $10,000. Employers should be proactive when it comes to protecting their confidential information and enforcing intellectual property laws.

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