How to Protect Trade Secrets and Confidential Business Information in Florida
In today’s competitive business landscape, protecting trade secrets and confidential business information is crucial for maintaining an edge in the market. Whether it’s a proprietary formula, client lists, or business strategies, Florida businesses must take proactive steps to safeguard their valuable information from competitors, employees, and cyber threats. Failing to do so can result in financial losses, legal disputes, and the erosion of a company’s competitive advantage.
Florida law provides strong protections for trade secrets, but businesses must take proper measures to ensure their confidential information remains secure. Here’s what you need to know from Bleakley Bavol Denman & Grace about protecting trade secrets in Florida.
What Qualifies as a Trade Secret in Florida?
Under Florida’s Uniform Trade Secrets Act (FUTSA), Fla. Stat. § 688.002(4), a trade secret is defined as:
- Information that includes a formula, pattern, compilation, program, device, method, technique, or process.
- Has economic value because it is not generally known to others who could gain economic advantage from its disclosure or use.
- Is subject to reasonable efforts to maintain secrecy.
A company’s failure to take reasonable steps to protect trade secrets can result in a loss of legal protection. This is why businesses must have clear policies in place to safeguard their confidential data.
Legal Protections for Trade Secrets in Florida
To ensure that confidential business information remains legally protected, Florida businesses should implement the following strategies:
1. Use Non-Disclosure Agreements (NDAs) and Confidentiality Clauses
- Require employees, contractors, and business partners to sign NDAs that explicitly prohibit them from disclosing or using trade secrets.
- Include confidentiality clauses in employment contracts to prevent employees from taking proprietary information when they leave the company.
2. Implement Strong Internal Security Measures
- Restrict access to trade secrets to only those employees who need to know.
- Use password-protected files, encrypted communications, and secure databases to prevent unauthorized access.
- Conduct regular security audits to ensure compliance with company policies.
3. Enforce Non-Compete and Non-Solicitation Agreements
- Florida law allows businesses to use non-compete agreements to prevent former employees from working for competitors or starting rival businesses.
- Non-solicitation agreements restrict former employees from poaching clients or employees.
- However, Florida law requires these agreements to be reasonable in scope, geography, and duration to be enforceable.
4. Take Action Against Misappropriation of Trade Secrets
- If an employee, competitor, or business partner misappropriates trade secrets, companies can file a lawsuit under FUTSA or the federal Defend Trade Secrets Act (DTSA).
- Remedies may include injunctions, monetary damages, and, in some cases, punitive damages and attorneys’ fees.
What to Do If Your Trade Secrets Are Stolen
If you suspect that a trade secret has been compromised, act quickly to prevent further damage. Steps include:
- Conducting an internal investigation to determine how the breach occurred.
- Issuing cease-and-desist letters to prevent further disclosure or misuse.
- Seeking emergency injunctive relief from a Florida court to prevent the use of stolen trade secrets.
- Pursuing civil or criminal legal action against those responsible.
Schedule a Consultation Today
Trade secrets are a valuable asset for any business, and Florida law provides strong protections—but only for companies that take proactive steps to protect them. Businesses should implement strong contractual agreements, internal security measures, and legal safeguards to minimize the risk of trade secret misappropriation.
If you need assistance drafting NDAs, non-compete agreements, or pursuing legal action for trade secret theft, the experienced Tampa business attorneys at Bleakley Bavol Denman & Grace can help. Contact us today to protect your business’s most valuable information.
