Are there any criminal sanctions for the misuse of trade secrets?
Yes, there are criminal sanctions for the misuse of trade secrets in Massachusetts. The misuse of trade secrets is prohibited by the state’s Uniform Trade Secrets Act. Under this law, it is illegal to acquire, misappropriate, or otherwise use trade secrets for the purpose of benefit or depriving the rightful owner of the secret. The criminal sanctions for misuse of a trade secret can include fines of up to $5,000 and/or up to 5 years in prison. In addition, restitution may be ordered. The fines and imprisonment are decided based on the seriousness of the offense and the value of the trade secret. If the trade secret is used to injure a competitor or to deprive someone of a business opportunity, the criminal sanction can be more severe. In these cases, the penalty can double to a fine of $10,000 and/or up to 10 years in prison. Additionally, State Attorney General Maura Healey is responsible for enforcing trade secrets law in Massachusetts and can bring civil action against the violators. Employers who violate this law will also be liable for damages. Overall, misuse of trade secrets can be a very serious offense in Massachusetts and incorporating a trade secret law into company policies and procedures is beneficial to prevent misuse and protect companies from potential punishments.
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