Wednesday, July 12, 2023

Alert: Not All Documents Labeled Confidential Actually Are

A Harris County Texas District Court jury found a telecom company acted in bad faith by filing a $23 million trade secret misappropriation lawsuit against a rival where the underlying technology was found to not actually be a trade secret...


As Texas courts have noted, and Liquid Networx cited in its motion for directed verdict, affixing a confidentiality label to a document does not necessarily make the information within a trade secret. See Providence Title Co. v. Truly Title, Inc., 547 F. Supp 3d 585, 609 (E.D. Tex. 2021) (“[B]usiness information is not necessarily a trade secret simply because it is confidential.”)...

It is important to always consider the nature of the document, how it was created, what value comes from keeping it confidential, what efforts are made to keep it from third parties, and what safeguards are used when it is disseminated to third parties, in analyzing trade secrets. more

Note: TSCM information security surveys are used by savvy businesses to show serious trade secret protection efforts.