# Trade secret litigation for companies and employees > Trade secret litigation for technology companies under the Defend Trade Secrets Act and state law, for owners and the accused. Fees quoted after a case review. Page: https://arapackelaw.com/ip-litigation/trade-secret-litigation/ Title: Trade Secret Litigation Attorneys | Rapacke Law Group Breadcrumb: [Home](https://arapackelaw.com/) / [IP litigation](https://arapackelaw.com/ip-litigation/) / [Trade secret litigation](https://arapackelaw.com/ip-litigation/trade-secret-litigation/) When code, data or know-how leaves with an employee or partner, the first days matter most. We act for companies protecting trade secrets and for those accused of taking them. - Owners and the accused - Federal and state court - Fees quoted after a case review ## For companies whose edge is confidential. Most trade secret cases start with people, not hackers. A departing engineer, a partner after a deal falls through, or a new hire who brought files from a former employer. - **Code or data left with an employee** Source code, model weights, customer lists or roadmaps taken to a competitor or a new startup. - **A partner used what you shared** A joint venture, supplier or prospective acquirer that kept using information shared under an NDA. - **You have been accused** A lawsuit or a letter claiming you or a new hire took someone else's trade secrets. - **You need to know where you stand** A forensic review and an honest read on the evidence before anyone files. ## What counts as a trade secret, and what doesn't. Under the Defend Trade Secrets Act, almost any business or technical information can be a trade secret, if it is valuable because it is not generally known and the owner takes reasonable measures to keep it secret. ### Can be a trade secret - **Source code and algorithms** Code, architecture and the methods behind a product that competitors cannot see. - **Model weights and training data** The parts of an AI system that took time and money to build. - **Customer lists and pricing** Compilations of customers, terms and margins that are not public. - **Processes and formulas** Manufacturing steps, recipes and formulas, like the Coca-Cola formula, protected for over a century. - **Negative know-how** What you learned does not work, which saves a competitor the same failures. ### Not protected - **Information already public** Anything published, patented or shown in a public demo. - **What anyone could work out** Information readily ascertainable by proper means. - **Secrets nobody protected** Information shared without NDAs, access limits or other reasonable measures. - **An employee's general skill** The experience and general knowledge a person takes to every job. - **Independent work** Something developed independently or reverse engineered from a lawfully obtained product. Protection lasts as long as the information stays secret. Once it is public, no lawsuit can make it secret again, which is why speed matters. ## What you have to prove in a trade secret case. Most trade secret cases turn on three questions. Each side builds its evidence around them, often with forensic and industry experts. 1. **A trade secret exists.** The information had value because it was secret, and the owner took reasonable measures to protect it, such as NDAs, access limits and confidentiality policies. 2. **It was misappropriated.** Someone acquired it by improper means, like theft, misrepresentation or a breach of a duty of confidentiality, or used or disclosed it knowing they should not. 3. **It caused harm.** Lost sales, a competitor's head start, or a gain the other side would not otherwise have had. You do not register a trade secret with any government office before suing. Courts protect the secret during the case with protective orders and filings under seal, so asserting it does not mean publishing it. ## The Defend Trade Secrets Act vs state trade secret law. Since 2016, trade secret owners can sue in federal court under the Defend Trade Secrets Act. It does not replace state law, so most cases plead both. *The Defend Trade Secrets Act and state trade secret law compared* | | Defend Trade Secrets Act | State trade secret law | | --- | --- | --- | | Where you sue | Federal district court | State court, or federal court alongside a federal claim | | When it applies | The trade secret relates to a product or service in interstate or foreign commerce | Every state except New York has a trade secret statute. New York relies on common law | | Time to sue | 3 years from when the misappropriation was or should have been discovered | Often 3 years, but it varies by state | | Seizure of property | Ex parte seizure, only in extraordinary circumstances | No equivalent in most states | | Extra damages | Up to 2 times damages for willful and malicious misappropriation | Up to 2 times in states that follow the Uniform Trade Secrets Act | | Attorney fees | For bad faith claims, or willful and malicious misappropriation | Similar rules in most states | Most states have adopted the Uniform Trade Secrets Act, North Carolina has its own statute, and New York has never adopted it. Where you file can change the remedies, the timeline and the judge, so it is one of the first decisions in a case. ## Move fast to keep the secret secret. The hardest part of a trade secret case is often keeping the information secret. Once it is public, no damages award can undo the loss. When a theft is suspected, the first goal is to stop the spread, then to prove what happened. ### If your trade secrets were taken 1. **Lock down and preserve.** Cut access, preserve devices and logs, and document what was taken and when. 2. **Investigate.** A forensic examiner reviews devices, accounts and repositories to show what left and where it went. 3. **Demand.** A cease and desist letter to the person and the new employer is sometimes enough to stop the use and recover the material. 4. **Ask the court for fast relief.** A temporary restraining order or preliminary injunction, and in extraordinary cases a seizure order, to stop further disclosure while the case goes on. 5. **Prove the case.** Discovery, expert witnesses on whether the information qualifies and what it is worth, then settlement or trial. Technical cases are won on understanding the technology. Our team comes from engineering and science, and [Andrew Rapacke](https://arapackelaw.com/learn-more/the-team/andrew-rapacke/) is admitted to practice in the Southern and Northern Districts of Florida and the Eastern District of Texas. ## Accused of taking a trade secret? An accusation is not a finding. The first steps are to preserve the evidence, find out exactly what was taken and how it is being used, and stop anything that could make it worse. - **Preserve everything.** Do not delete files, wipe devices or close accounts. Destroying evidence can turn a defensible case into a losing one. - **Investigate internally.** A forensic review of laptops, cloud accounts and code repositories shows what came in with a new hire, and whether it was used. - **Wall it off.** Keep anything from a former employer away from your product and your team while the facts are sorted out. ### Common defenses - **It was not a secret.** The information was public, readily ascertainable or never protected with reasonable measures. - **Independent development.** Your team built it on its own, which a clean development record can show. - **Reverse engineering.** Taking apart a lawfully obtained product is not misappropriation. - **No use and no harm.** The information was never used, or caused no damage. Theft of trade secrets can also be a federal crime under the Economic Espionage Act. When there is any risk of criminal exposure, the civil defense has to be planned with it in mind. ## What remedies are available for trade secret misappropriation? Under the Defend Trade Secrets Act, a court can stop the misuse and award money. What a court actually orders depends on the evidence, and no lawyer can promise a result. - **Injunction.** An order stopping actual or threatened misuse. It cannot stop someone from taking a new job, and conditions on employment need evidence of threatened misappropriation, not just what the person knows. - **Damages.** Your actual loss plus the other side's unjust enrichment, or a reasonable royalty for the unauthorized use. - **Exemplary damages.** Up to twice the damages if the misappropriation was willful and malicious. - **Attorney fees.** For willful and malicious misappropriation, and against a party that sued or defended in bad faith. - **Seizure.** In extraordinary circumstances, a court can order property seized to stop a secret from spreading. > **For employers** > > Agreements with employees, contractors and consultants that cover confidential information must include the Defend Trade Secrets Act's whistleblower immunity notice. Without it, an employer cannot recover exemplary damages or attorney fees against that person. ## Fees quoted after a case review. Every trade secret case is different, so there is no list price. We review the facts and the documents first, then quote the fee for the work in front of you before any of it begins. ### What sets the cost - Whether you are the owner or the accused, and how quickly you need a court order - Forensic review of devices, accounts and code repositories - Expert witnesses on the technology and on damages - The scope of discovery and how far the case goes before it resolves Many disputes are settled with a demand letter or a negotiated agreement long before trial, and the quote reflects the stage you are at. Litigation is not covered by The RLG Guarantee. ## From the first call to a resolution. Trade secret cases move at the speed of the facts. Timing shown is typical, never a promised date. 1. **Case review call** (Day one). Free. What happened, what was taken and what is at stake. 2. **Preserve and investigate** (First days). Evidence locked down, forensic review started. 3. **Demand or defense letter** (Early). Often the first chance to resolve it. 4. **Court filings** (If needed). Complaint and, where needed, an emergency motion. 5. **Discovery and experts** (Months). Documents, depositions and expert reports. 6. **Resolution**. Settlement, a ruling on motions, or trial. ## Protect trade secrets before you need to sue. Every trade secret case asks whether you took reasonable measures to keep the secret. The answer is decided long before the dispute. - **Agreements.** NDAs with partners and manufacturers, and confidentiality and invention assignment agreements with every employee and contractor. More on [non-disclosure agreements](https://arapackelaw.com/non-disclosure-agreements-ndas/). - **Access limits.** Repository permissions, need-to-know access to data and models, and logs of who downloaded what. - **Onboarding and offboarding.** Confirm that new hires bring nothing from former employers, and collect devices and access from people who leave. - **Marking and policy.** Label confidential material and keep a written policy people actually follow. Noncompete agreements are governed by state law. The FTC's 2024 rule banning most noncompetes never took effect and was removed from the Code of Federal Regulations in February 2026. ## Trade secrets in software and AI. For many software companies, trade secrets protect more than patents do. Source code, model weights and training data are valuable precisely because no one outside can see them. They are also easy to copy. A repository clone or a download of model weights can take seconds, so software trade secret disputes often turn on access logs, commit histories and device forensics, and on how quickly the owner acted. Trade secrets work alongside patents, not instead of them. A method a competitor could learn from your product needs a patent, while what stays hidden can stay a secret. See [software patents](https://arapackelaw.com/patents/software-mobile-app-patent/) and [using trade secret protection for AI](https://arapackelaw.com/trade-secrets/trade-secret-ai-ip/). ## Questions about trade secret litigation. ### What is trade secret litigation? A lawsuit over confidential business or technical information that someone acquired, used or disclosed without permission. It can be brought under the federal Defend Trade Secrets Act, state trade secret law, or both, and most cases also involve contract claims such as a breach of an NDA. ### What is trade secret misappropriation? Acquiring a trade secret by improper means, such as theft, bribery, misrepresentation or a breach of a duty of confidentiality, or using or disclosing one without consent when you knew or should have known it was obtained improperly. Reverse engineering and independent development are not misappropriation. ### What remedies can a trade secret owner get? Under the Defend Trade Secrets Act, an injunction against further misuse, damages for actual loss and unjust enrichment or a reasonable royalty, up to twice those damages for willful and malicious misappropriation, attorney fees in some cases, and in extraordinary circumstances an order seizing property. State laws provide similar remedies. ### How long do I have to file a trade secret lawsuit? Under the Defend Trade Secrets Act, three years from when the misappropriation was discovered or should have been discovered with reasonable diligence. State deadlines vary. Waiting is risky for another reason, because a court asked for an injunction will want to know why you did not act sooner. ### Do I have to register a trade secret to protect it? No. Trade secrets are protected without any filing, as long as the information is valuable because it is secret and you take reasonable measures to keep it that way. ### Will I have to reveal my trade secret in court? You have to identify it to the other side, but courts use protective orders that limit who can see it and allow filings under seal, so it does not become public. ### Is software protected as a trade secret? Often, yes. Source code, algorithms, model weights and training data can all be trade secrets if they are kept confidential. What a competitor can learn from the product itself may need a patent instead. ### Can a former employee be stopped from working for a competitor? Not just for knowing things. The Defend Trade Secrets Act does not allow an injunction that prevents someone from taking a job, and any limits need evidence of threatened misappropriation. Noncompete agreements are governed by state law, since the FTC's noncompete rule never took effect. ### What is the difference between a trade secret and a patent? A patent protects an invention for a fixed term in exchange for publishing it, and stops even someone who develops it independently. A trade secret lasts as long as it stays secret, but it does not stop independent development or reverse engineering. ### Do you represent companies accused of trade secret theft? Yes. We act for owners and for companies and individuals accused of misappropriation, including employers whose new hire is accused of bringing information from a former employer. ### How much does trade secret litigation cost? It depends on how urgent the case is, how much forensic and expert work it needs, and how far it goes before it resolves. We quote the fee after a case review and before any work begins. ## Your attorneys - [Andrew Rapacke](https://arapackelaw.com/learn-more/the-team/andrew-rapacke/), Managing Partner, Registered Patent Attorney. Former Naval Engineering Officer. M.S. in electrical and electronics engineering. Meet the team at https://arapackelaw.com/learn-more/the-team/ ## More in IP litigation - [IP litigation](https://arapackelaw.com/ip-litigation/) - [Patent litigation](https://arapackelaw.com/ip-litigation/patent-litigation/) - [Trademark litigation](https://arapackelaw.com/ip-litigation/trademark-litigation/) - [Copyright litigation](https://arapackelaw.com/ip-litigation/copyright-litigation/) ## Go deeper on trade secrets. - [5 Examples of Trade Secrets and How They Fit into Your Intellectual Property Strategy](https://arapackelaw.com/intellectual-property/examples-of-trade-secrets/) - [How Software Companies Can Use NDAs to Protect IP Assets](https://arapackelaw.com/trade-secrets/how-to-protect-software-ip-nda/) - [Using Trade Secret Protection for AI IP](https://arapackelaw.com/trade-secrets/trade-secret-ai-ip/) [All trade secret articles](https://arapackelaw.com/category/trade-secrets/) ## Next steps - [Book a free strategy call](https://arapackelaw.com/contact-us/) with a registered patent attorney, or call (954) 951-0154 - [Take the Intelligent IP Quiz](https://arapackelaw.com/intelligent-ip-quiz/) to see what to protect first - [The RLG Guarantee](https://arapackelaw.com/rlg-guarantee/), the refund promise on four services General information, not legal advice.