Are there any criminal penalties for the misuse of trade secrets?
In Virginia, the misuse of trade secrets can have criminal penalties. Trade secret is defined as “any information, including a formula, pattern, compilation, program, device, method, technique or process” that is kept secret and that has economic or business value. Under Virginia Code § 59.1-336, the misuse of trade secrets is prohibited. It is a Class 1 misdemeanor if a person: (1) acquires, or attempts to acquire, a trade secret of another by means of a theft, bribery, misrepresentation, or espionage; (2) discloses, or attempts to disclose, a trade secret of another without the prior written consent of the other person, or (3) uses or attempts to use a trade secret of another without the prior written consent of the other person. The criminal penalties for the misuse of trade secrets may include a fine of up to $2,500 and/or imprisonment for up to 12 months. If someone is found guilty of violating this law, they may also be liable for damages or injunctive relief, which means they may be required to pay the injured party for any losses caused by the violation. It is important for businesses to protect their trade secrets to avoid the criminal and civil consequences of a misused trade secret. By protecting their trade secrets, businesses can help ensure their proprietary information and confidential information remain secure.
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