Can trade secrets be taken to court?

Yes, trade secrets can be taken to court. In Texas, trade secrets are protected by the Texas Uniform Trade Secrets Act (TUTSA). It is a state law that provides legal remedies to protect the misappropriation (unauthorized use) of trade secrets. Under TUTSA, an employer can sue an employee, former employee, or potential employee for misappropriation of a trade secret. A trade secret can include anything from customer and supplier lists, recipes, formulas, plans, processes, or machines. The courts can order an injunction (order to stop doing something) to stop the misappropriation of the trade secret, and can also order damages (monetary compensation) if the trade secret was taken and used without permission or authorization. In Texas, damages may be an amount equal to the actual loss suffered by the employer or the employer’s gain from the misappropriation, whichever is greater. In addition, a court may order reimbursement of attorney’s fees and court costs. This is important if an employer needs to take someone to court in order to protect its trade secrets. If you have a trade secret that you believe has been misappropriated or stolen, you may be able to take the person to court and recover damages or take steps to stop further misappropriation.

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