Did you know that “Tortious Interference with Contract” is another primary reason or consideration for an employer to assert a cause of action against an employee who has misappropriated trade secrets or confidential information? To move the discussion forward, this blog post and Part IX of the series is an overview of “Unfair Competition from a Former Employee or New Employer” as the sixth “Consideration for an Employer when Drafting a Complaint & Asserting a Cause of Action” in the same regard.
Unfair Competition from a Former Employee or New Employer
Checking whether a stand-alone cause of action for unfair competition is recognized in one’s state is crucial for employers who may have sufficient evidence and have made a complaint concerning a trade secret misappropriation. As we have mentioned in past blogs, a trade secret misappropriation concerns the unauthorized access, acquisition, or use of an employer’s proprietary property or information for the benefit of the employee and/or a competitor but to the detriment of the former employer. In this regard, the same chain of misconduct under which a breach of fiduciary duty and/or trade secret misappropriation claim might be underpinned could be the basis of unfair competition. However, this depends on one’s jurisdiction.
For example, in a case where an employee sends the former employer’s confidential information to themselves, but word gets out that this employee is planning to start a competing business and/or has signed a contract to work for a competing company, the employer is likely to succeed on an unfair competition claim. However, as mentioned above, this cause of action is not recognized in all states and depends on one’s jurisdiction. Furthermore, in states where it is recognized, any causes of action aimed at benefiting consumers and the public by combating deceptive trade practices and misconduct associated with the theft of intellectual property may be limited.
Stay tuned for Part X of this series, in which we shall move the discussion forward by hammering on “Fraud & Abuse of Computers under the Computer Fraud and Abuse Act” as the seventh consideration for an employer to draft and assert a cause of action for a trade secret misappropriation and/or a breach of a restrictive covenant/agreement.
In the meantime, stay tuned for more legal guidance, training, and education. In the interim, if there are any questions or comments, please let us know at the Contact Us page!
Always rising above the bar,
Isaac T.,
Legal Writer, Author, & Publisher.