Its no secret that clientele is one of a businesses most important assets.Unfortunately, customer poaching and trade secret theft are all too common in this jurisdiction. Oftentimes, ill-intentioned competitors and former employees resort to these illegal tactics for their own financial  gain.However, businesses can take legal measures to curb fraudulent activities.
Fraudulent competitive practices manifest in various ways, including:

• Departing employees who reach out to their former client contacts by using the customer list of a company.

• Executives defecting to competing companies, taking valuable proprietary information with them

• Employees absconding with trade secrets to their new employers.

Common examples of what can be illegally taken from one’s company and shared with another include :(a)customer lists, 

(b)business plans, product designs, proprietary software code, and financial data.

It’s very important for companies must take proactive steps to ensure the preservation of trade secrets crucial to their success. Marketing tactics, lead lists, development designs, and more are all susceptible to theft, which can inflict significant financial damage to the business.
Here are several strategies that businesses can employ to safeguard their interests:
1. Catalog Trade Secrets: This entails identifying valuable data, client lists, trademarks, patents, and other similar information that provide a competitive edge to the company.

2. Physical and Digital Security: Adequate measures should be taken to secure trade secrets, whether they involve locked cabinets, password-protected networks, or the utilization of watermarks and confidential stamps on physical and digital documents.

3. Employee Training: Comprehensive training on confidentiality should be provided to all employees, ensuring they understand how to handle sensitive company information and recognize what constitutes a trade secret

.4. Confidentiality Agreements: It is critical for all employees, even those without direct access to trade secrets, to sign confidentiality agreements. These agreements serve as a reminder that named assets are valuable, proprietary and must never be disclosed to competitors or third parties.

5. Non-Solicitation Agreements: Employees should also be required to sign non-solicitation agreements, which prohibit them from contacting company clients for a specified period after retirement, resignation, or termination.

Additional clauses can also stipulate that employees may not engage in communication with clients during that timeframe, even if the client initiates contact.By implementing these measures, businesses can strengthen their ability to safeguard valuable trade secrets and mitigate the risks associated with their exposure.

It is prudent to eliminate customer and trade secret theft by former employees.Whether the departing worker is a single incident or part of a larger defection, a business must immediately act to prevent the theft of valuable proprietary assets.

If a business learns that one or more employees are leaving, the following should be done immediately:

• Gather computers and any other electronics used by the employees in question.

• Ensure all backups are not overwritten, possibly destroying needed evidence.

• Check for missing files and documents.

• Talk with trusted employees about the situation.

• Contact your legal Counsel.

Unfortunately, many times it is necessary to issue Cease-and-Desist Letters prepared by your legal counsel if you discover that a former employee is utilizing your customer data or trade secrets, you can seek legal recourse by having your attorney send a cease-and-desist letter. Such a letter serves as a formal demand for immediate cessation of their unlawful actions while also warning of potential further legal consequences if they fail to comply.

Cease-and-desist letters are typically appropriate in the following scenarios:

• Breach of Contract

• Defamation

• Violations of Nondisclosure Agreements

• Intellectual Property Infringement

To be considered a trade secret, the list cannot be ascertainable from public sources. If the stolen information caused injury to your business and there was a valid contractual relationship, a business can enforce their trade secret rights in court.A court has the power to do the following

:• Grant an injunction ordering the individual to take or not take an action

• Order the employee to pay damages for the breach of contract or for intellectual property infringement

• Order the employee to compensate the company for any legal costs and the list goes on.

At McFarlane and Partners, we offer over a decade of experience in corporate and commercial law matters. Our deep understanding of the legal landscape gives us a distinct advantage in advocating for our clients. We represent companies in safeguarding their trade secrets and seeking compensation for any financial or reputational harm they have suffered.
Have you experienced customer loss due to illegal business practices? Are you uncertain about the enforceability of your current employment agreements? Consult with one of our skilled attorneys to discuss your rights and explore your options. Contact us online or call  876-388-0935 and email:mcfarlaneandassociates@gmail.com