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Tort of trade secret kind of precautions do employers use to guard their valuable intellectual property from misappropriation by disgruntled, departing employees.
What legal protection is available for trade secrets?
- Courts in the United States can protect a trade secret by (a) ordering that the misappropriation cease, (b) protecting the secret from public disclosure, and (c) in exceptional circumstances, ordering the seizure of the misappropriated trade secret.
- Trade secrets are also legally protected under state and federal tort law. This is crucial for two reasons. First, suing under tort law provides trade secret owners with a second cause of action that may increase the amount of money and punitive damages that can be obtained.
- In general, trade secret protection grants owners the right to prevent information lawfully under their control from being disclosed, acquired, or used by others without their consent in a manner that is contrary to fair business practice.
- Nondisclosure agreements are the most common and effective way to protect trade secrets (NDAs). Courts have repeatedly stated that the use of nondisclosure agreements is the most important way to keep confidential information private.
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