When confidential information walks out of a business, speed matters more than almost anything else, because a trade secret that becomes widely known stops being a trade secret. We act for Maryland businesses pursuing misappropriation claims and for individuals defending them. Call (410) 752-9300 or use the contact form on this page.
Two kinds of case
Trade secret disputes divide almost cleanly in two, and which one you have determines how it gets fought. The first is misuse by someone who had legitimate access, typically a former employee or contractor, and those cases turn on the contractual documents that governed their access. The second is misuse by a competitor or third party who obtained the information improperly, whether through corporate espionage, a hack, or a departing employee’s new employer. Those are misappropriation and unfair competition claims.
Where you can bring the claim
Both Maryland and federal law are available. Maryland’s Uniform Trade Secrets Act, Md. Code, Commercial Law §§ 11-1201 to 11-1209, provides for injunctive relief and damages. The Defend Trade Secrets Act of 2016, 18 U.S.C. § 1836 et seq., separately created a federal civil cause of action, giving a qualifying claim a route into federal court and, in extraordinary circumstances, an ex parte order for the seizure of misappropriated material. Which forum suits a particular dispute is a tactical decision worth making deliberately.
Cases against former insiders
Where someone had legitimate access, your case is largely built on what they signed.
Non-disclosure and confidentiality agreements prevent a party from disclosing or misusing information given to them in confidence. Their most common failing is imprecision. An agreement that does not adequately identify the information covered is very hard to enforce, because you have to prove later exactly what was breached.
Non-compete agreements restrict the competition a person may engage in after the relationship ends. Maryland courts do enforce them, but warily, and only so far as they are reasonable and genuinely necessary to protect legitimate interests. Courts weigh the geographic area, the duration, and the nature of the information at issue.
There is also a statutory limit that is easy to miss. Md. Code, Labor & Employment § 3-716 makes non-compete provisions unenforceable against lower-wage employees, measured against a multiple of the State minimum wage. An agreement that is void by statute offers no protection at all, however carefully drafted, so where your workforce sits in the wage structure is a live question when these agreements are written and again when one is enforced.
Cases against competitors and third parties
Where information has been taken by improper means, the immediate priority is containment rather than compensation. The first move is usually to seek an injunction stopping further use or disclosure before the information spreads far enough to lose its value permanently. Damages follow. Preserving the secret does not wait.
That is why these matters are urgent in a way most commercial disputes are not. Delay does not merely weaken your position. It can destroy the asset.
What you will have to prove
Expect to establish that the information qualified as a trade secret, that you took reasonable measures to keep it secret, and that the defendant acquired, disclosed or used it improperly. The second of those is decided almost entirely by what you did before the dispute. See protecting trade secrets under Maryland law and confidentiality agreements.
Act quickly
If you believe confidential information has left your business, the first days matter. Call (410) 752-9300 or use the contact form on this page.