What is trade secret misappropriation?

Trade secret misappropriation is a term used to describe the use or disclosure of someone else’s trade secret without their permission. Trade secrets are confidential information that businesses use to gain an economic advantage over competitors. They may include confidential formulas, designs, methods, valuable customer lists, and other proprietary data. Washington has a series of statutes and common law protections in place to protect trade secrets, and to allow trade secret owners to take legal action to stop unauthorized use or disclosure. Trade secret misappropriation typically occurs when a former employee uses the trade secret in which they had access to in their former job to benefit a new employer or otherwise use it for their own personal benefit. Other examples of trade secret misappropriation could include someone stealing a formula from a company, a person who discloses confidential information to a competitor or other third party, or when someone intentionally or negligently allows the secret to become known through their own recklessness. In Washington, anyone found guilty of trade secret misappropriation could be sued for damages and may even face criminal penalties. Additionally, unfair competition laws may also be used to protect trade secrets. To avoid trade secret misappropriation, companies should strive to protect their trade secrets closely, and have processes in place to ensure confidential information is not shared without permission.

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What is trade secret misappropriation?

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