How to Report Someone for Violating Your Small Business Trade Secrets

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By eHow Contributing Writer

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Almost all businesses have important secrets that give them a competitive edge. Keeping these trade secrets confidential can be crucial to the success of the company, as a violation of them can result in financial losses and is a considered a crime. That's why knowing how to report someone who has violated your trade secrets is an important aspect of running a small business.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

Lawyer familiar with intellectual property or copyright law

Know What Constitutes a Trade Secret

Step 1

Think about what makes your business successful. A trade secret can refer to a marketing strategy or plan, product, service, software program, idea or process. It can also include a price list or list of customers.
Step 2

Consider what competitive advantage a possible trade secret gives you. In order for something to be considered a trade secret, you have to be able to prove that it provides you with a competitive advantage.
Step 3

Determine what ideas you generally keep from others. If you want to pursue action against someone for violating a trade secret, you must be able to prove that you attempted to protect it from being discovered.
Step 4

Know that patents, copyrights and trademarks are legally recognized, registered property, whereas a trade secret is not disclosed information. In addition, there is no time limit on how long a trade secret is protected.

Prevent Someone From Violating Your Trade Secrets

Step 1

Limit the access to the trade secret. Maintain security by keeping the secret locked up or labeling files or paperwork associated with the trade secret as confidential. If the secret is stored on a computer (such as a customer mailing list), restrict access to the database and change the password regularly.
Step 2

Have all employees, investors or anyone else who comes in contact with your trade secret sign a legally-binding nondisclosure agreement that makes them liable for revealing the trade secret.

Report Someone for Violating a Trade Secret

Step 1

Hire a lawyer who specializes in intellectual property or copyright law to handle a violation of your trade secrets.
Step 2

Report someone by asking a court to issue an official injunction against the person who has violated your trade secrets. You can also file an injunction against a company or other small business that may have received the information.
Step 3

Seek financial compensation if the violation of your trade secret resulted in a loss of profits. Even if it didn't, you can pursue criminal charges.