Trade Secrets Protection and Litigation in North Carolina

Trade secrets are valuable business assets, and protecting them is critical to maintaining a competitive edge in the marketplace. North Carolina has adopted the Uniform Trade Secrets Act (UTSA), which provides businesses with legal protection against the misappropriation of their trade secrets. For information to qualify as a trade secret under this law, it must meet specific requirements: the information must be valuable because it is not generally known or easily discoverable, and the business must take reasonable steps to keep the information confidential.

What Qualifies as a Trade Secret?

Not Generally Known

A business cannot claim that information is a trade secret if it is widely known or accessible without the business’s permission. For example, common business processes or techniques, like combining carbonated water and flavoring for beverages, do not qualify as trade secrets because they are well known and easily discoverable. However, the specific recipe for a soft drink—such as the formula for a leading soda brand—is a trade secret because it is not generally known and requires substantial effort to uncover.

Protection of Secrets

To maintain the legal status of information as a trade secret, a business must take diligent steps to protect it. This includes restricting access to sensitive information and processes. For example, a company may require visitors to sign confidentiality agreements before allowing them access to proprietary areas or processes. Similarly, keeping sensitive information on a secure network that is not freely accessible is essential to preserving its trade secret status. Failing to take these precautions can jeopardize the business’s ability to claim legal protection for its trade secrets.

Remedies for Trade Secret Misappropriation

When trade secrets are stolen or improperly disclosed, North Carolina law provides several remedies for the affected business. These remedies include:

• Injunctions: The court may issue an injunction preventing the use or disclosure of misappropriated trade secrets.
• Monetary Damages: Businesses may recover damages for lost sales, profits, or other financial harm caused by the theft of their trade secrets.
• Reasonable Royalties: In some cases, the court may order the party that misappropriated the trade secrets to pay a reasonable royalty for their use.
• Punitive Damages: If the theft of trade secrets was willful and malicious, the business may be entitled to punitive damages, which are intended to punish the wrongdoer and deter future misconduct.
• Attorneys’ Fees: In cases of willful and malicious misappropriation, the court may also award attorneys’ fees to the prevailing party.

How Ferikes Bleynat & Cannon Can Help

At Ferikes Bleynat & Cannon, our Trade Secrets Attorneys are experienced in both prosecuting and defending claims involving the misappropriation of trade secrets. We work with businesses to develop effective legal strategies for protecting their valuable information and pursuing claims when trade secrets are stolen or improperly disclosed. Whether you need guidance on safeguarding your trade secrets or are facing litigation related to misappropriation, our team is here to help.

Contact Us

If your business is facing issues related to trade secret protection or litigation, contact Ferikes Bleynat & Cannon today. Our experienced attorneys can provide the legal advice and representation you need to protect your business’s valuable information.