Many intellectual property claims fall under copyright, trademark, or keenan laws. Federal laws and some state laws outline what constitutes a breach of another’s rights under these areas of law. Typically, intellectual property claims are civil claims. 

Trade secret litigation is often a civil claim as well. In some cases, however, theft of a trade secret may also have criminal law implications. It is important to understand how civil and criminal law may overlap in a specific case to navigate both areas effectively. 

When a trade secret is stolen or taken improperly, the owner of the trade secret may choose to seek an injunction. An injunction is a court order prohibiting the party that took the trade secret from using or disclosing it until the case can be resolved. An injunction is often a first step in a trade secret case, intended to limit the potential damage to the trade secret’s owner while the case proceeds. 

The owner of the trade secret may also pursue compensation for any financial losses related to the theft or improper taking of the trade secret. Typically, a trade secret litigation claim has three elements, which the owner of the trade secret must prove:

• The subject matter is a “trade secret” as defined by the USPTO,
• “Reasonable” precautions were taken to prevent the subject matter from being disclosed to unauthorized persons, and
• The subject matter was “misappropriated or wrongfully taken.” 

Not all trade secrets are passed on to others by improper means. For example, reverse engineering, independent discovery, or disclosure due to a lack of proper reasonable precautions can all result in a trade secret landing in another’s hands. It’s important to consult with an experienced lawyer as soon as possible to determine what happened and address the loss of a trade secret.