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Trade secret violations and New York company losses

On Behalf of | May 16, 2023 | Business And Commercial, Corporate Litigation

Trade secrets remain critical areas of concern for companies running operations in New York. When a business invests in anything designed to help it overcome competition and maintain a strong foothold in the market, it becomes essential to keep certain things confidential. Unfortunately, trade secrets could become compromised, necessitating legal action.

Trade secrets and legal issues

There are numerous ways a company may experience a trade secret violation. Sometimes, a disgruntled employee may leak information to a competitor. Or, an employee could change jobs and reveal confidential information to the new employer. Either way, the business experiencing compromised trade secrets could suffer harm and take legal action. Sometimes, a cease and desist letter may put an end to troubles. Other times, legal actions need to be more involved.

Filing a lawsuit might be unavoidable when someone steals or misuses trade secrets. Business owners and executives may find such actions inevitable to protect their interests and stem losses.

Resolving trade secret litigation

Business litigation involving trade secrets could seek damages for losses incurred. If a company’s trade secrets are violated, management can take legal action to recover its lost revenue. In addition, the value of the trade secrets may decrease once they are compromised, and the company can also sue to recover any losses from this devaluation. The amount of compensation sought could be substantial.

Companies that experience trade secret violations could suffer harm to their reputation. Significant unwanted or damaging publicity could arise from the matter, leaving the company seeking damages.

A company could take action to address current injuries experienced by a trade secrets violation. Requesting an injunction against any company using illegally compromised secrets may be a legal option worth exploring.