Arizona Complaint - Trade Secrets - Misappropriation by Former Employee and Prospective Purchaser - Breach of fiduciary duty
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FAQ
Breaches of non-disclosure agreements, industrial espionage, theft, fraud, and bribery are all improper means of acquiring a trade secret. For example, if you hack into a company's computer and copy the files, this act of acquiring the secrets improperly is misappropriation.
Criminal Prosecution for Stealing Trade Secrets Sentencing under the Economic Espionage Act can include imprisonment for up to 10 years. If a conviction is obtained against an individual, the defendant can be fined up to $500,000. If a conviction is obtained against a corporation, the fine may be up to $5 million.
If you're found guilty of the theft of trade secrets in violation of federal law, you could face severe penalties, including forfeiture, fines, and up to 10 years in federal prison.
Information is a trade secret if it "[d]erives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use" and reasonable efforts are made to maintain secrecy. A.R.S.
Most commonly, a plaintiff will seek damages in the form of either its lost profits or the defendant's unjust enrichment. Lost profits and unjust enrichment generally are regarded as mutually exclusive forms of relief, and the award of both in full as an impermissible double recovery.
To establish violation of trade secret rights, the owner of a trade secret must be able to show the following: (1) Infringement by or competitive advantage gained by the person/company which has misappropriated the trade secret. (2) The owner had taken all reasonable steps to maintain it as a secret.
Remedies that may be available Damages for the actual loss. Damages for unjust enrichment. Exemplary damages in cases of willful or malicious misappropriation. Attorney's fees for the prevailing party. Protective orders to preserve secrecy.
This doctrine holds that a third party is liable when the third party acquires a trade secret from another and then discloses or uses the secret under circumstances where he knows or should have known that the trade secret was wrongfully acquired.