Home Blog Trade Secret Dispute: Protection, Evidence, Resolution Steps

Trade Secret Dispute: Protection, Evidence, Resolution Steps

This page explains what a trade secret dispute is, how to deal with it, and when to consult with a lawyer from ContractsCounsel.

Jump to Section

Trade secret disputes occur when one party uses another party’s sensitive business information without their consent. Examples of sensitive information include personal client lists, marketing plans, or chemical formulas that give them a competitive edge in their industry.

If you’re dealing with a trade secret dispute, you’ll want to know how to minimize your risks so your reputation and business aren’t harmed.

Read the rest of this article to explore the most common types of trade secret disputes, how to deal with them, and when to consult with a lawyer.

How are Trade Secrets Stolen?

Generally, trade secrets are exposed or stolen in one of three ways:

  • Unauthorized access. This involves hacking or data breaches.
  • Misuse of disclosure to third parties. An example includes sharing private information to other companies or contractors.
  • Employee misuse. In some cases, trade secrets can be exposed by employees who have access to the information.

What are Red Flags of Your Trade Secrets Being Exposed?

You might not realize that your trade secrets have been exposed or misused right away. Here are some signs that might show up early on, which could signal a violation has occurred.

  • You’ve noticed that clients or customers are using a competitor’s services instead of yours.
  • You’ve seen evidence online that a competitor is copying your product specifications or formulas.
  • Your company documents have been accessed for unauthorized use.
  • An employee or business partner has accessed information that is outside of their work scope or role.

How Should You Deal with a Trade Secret Dispute?

When dealing with a trade secret dispute, it’s important to take action promptly.

Collect Evidence

Gather as much evidence as you can to show that trade secrets were leaked or stolen. This could include showing proof of similar products being released by a competitor or getting witness statements from employees about the misuse.

You should also collect any documentation that applies to the trade secret violation, such as contracts that contain clear and specific NDA clauses.

Send a Cease and Desist Letter

You can send the other party a letter informing them of the trade secret exposure and reminding them of their duty not to share it. You could also threaten litigation if they don’t stop their behavior.

In the letter, you can request that they return any outstanding items, such as company-issued USB devices.

Although you can hire a lawyer to draft a cease and desist letter, you can also purchase a cease and desist letter template from ContractsCounsel, an online legal network. It’s a legally-sound and clear document that’s been drafted by a vetted lawyer on the platform. You can purchase and download it within minutes.

Consider Mediation

You can hire a mediator to help you if you and the other party want to try to resolve the issue out of court. This works well for situations where you and the other party have a working relationship you want to maintain. A mediator will listen to and encourage amicable negotiations as you and the other party try to reach a settlement.

Choose Arbitration

If you need a more formal method for resolving the trade secret dispute, consider hiring an arbitrator who will listen to both parties’ evidence and then decide on a resolution or settlement. This can be useful if you and the other party aren’t able to negotiate amicably.

How Can You Prevent Trade Secret Disputes?

You can prevent many trade secret disputes by taking some important steps.

Define Confidential Information in Agreements

This will prevent disputes from arising between you and other parties. Your contracts and agreements should clearly specify what constitutes confidential information so that people know there are consequences should they expose them.

Give Employees Non-Disclosure Agreements (NDAs) to Sign

Employees and anyone who has access to your business’s trade secrets should sign an NDA that specifies what they should not disclose to other parties. This can be included as a clause in employment contracts.

Limit Disclosure

Where possible, try to limit how many people in your company have access to your trade secrets. You should only share the information on a need-to-know basis instead of making it easily accessible.

Improve Security Systems

It’s essential to have strong security measures in place, such as by using encrypted storage systems.

How Can a Lawyer Help You With a Trade Secret Dispute?

It helps to have an experienced, skilled lawyer on your side if you’re going through a trade secret dispute. Here are some ways in which they can support your case.

They’ll Gauge the Nature of the Dispute

A lawyer will investigate your case to find out if it involves a violation of a contract signed between you and the other party, or some other misconduct.

They will explore what duties parties had under the agreement and help you explore your options for how to resolve the dispute.

They’ll Initiate an Injunction

To prevent future trade secret use, a lawyer can request an injunction to prevent the other party from using the information.

They’ll Seek Compensation

Your lawyer can help you gain monetary damages if you’ve suffered financial losses due to the trade secret exposure by building a strong case in court.

They’ll Draft Legal Documents

Your lawyer will draft legal documents, such as cease and desist letters, to help you reach a settlement or negotiate with the other party. They can also review documents, such as NDAs or employment contracts, to ensure that your sensitive business information will be protected in the future.

They’ll Gather Important Evidence to Strengthen Your Case

It’s not always easy to know what constitutes effective evidence. A skilled lawyer will be able to build you a robust collection of evidence that increases the chance of getting a favorable dispute-resolution outcome, both in and out of court.

Do you need a lawyer for trade secret disputes?

On ContractsCounsel, it’s easy and advantageous to hire a lawyer for a trade secret dispute. They’ll help you by prioritizing your rights and guiding you through effective options to resolve the disagreement.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


Need help with a dispute

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 22,767 reviews

Meet some of our Lawyers

Eric M. on ContractsCounsel
View Eric
5.0 (3)
Member Since:
July 25, 2020
Scott S. on ContractsCounsel
View Scott
5.0 (34)
Member Since:
July 28, 2020

Scott S.

Principal
Free Consultation
New York, NY
45 Yrs Experience
Licensed in NY
New York University School of Law

I have over 25 years' experience representing individual and company clients, large and small, in transactions such as mergers and acquisitions, private offerings of securities, commercial loans and commercial endeavors (supply contracts, manufacturing agreements, joint ventures, intellectual property licenses, etc.). My particular specialty is in complex and novel drafting.

Recent  ContractsCounsel Client  Review:
5.0

"Scott had a quick turnaround on my company’s operating agreement."

Brianna N. on ContractsCounsel
View Brianna
5.0 (2)
Member Since:
June 16, 2021

Brianna N.

Attorney
Free Consultation
New York
10 Yrs Experience
Licensed in NY
Touro Law School

Brianna is a well-respected New York licensed attorney with a Juris Doctorate degree in law from Touro College Jacob D. Fuchsberg Law School and bachelor’s degree in Business Administration and Management from Dowling College. Since becoming an attorney, she has practiced in various areas including business law, corporate law, residential real estate, commercial real estate, criminal law, traffic law, employment law, landlord tenant law, estate planning, and has represented intermediaries in procurement and the personal protective equipment industry. Brianna has broad and extensive business experience; She is an entrepreneur and co-owner of a microtechnology manufacturing company that was built by her and her partner, where she also served as the Chief Legal Officer and Human Resource Manager for the company. While building the manufacturing business, she created a brokerage firm for business transactions and has managed several other businesses which she has ownership interest in. Brianna’s involvement in these various businesses over the past 15 years provides a unique skillset to her clients; Not only does she understand contractual principals and obligations from a legal perspective while drafting and negotiating agreements, but she also has the foresight, experience, and ability to ensure the agreement reflects the practical aspects of the business. Based on the client’s needs and desired outcome, she has the forethought to cover different angles that would be overlooked from a legal standpoint, and as a result she is able to help prevent unforeseen business ramifications. She conducts extensive risk assessments on behalf of her clients and minimizes exposure to potential liability without “over lawyering” agreements. One of Brianna’s main areas of focus is drafting and negotiating agreements. Negotiation is a passion of hers which was applied in law school while she was a member of the Alternative Dispute Resolution Society, notably winning Touro Law School’s intraschool negotiation competition. In her more recent years, Brianna has removed herself from her various business interests to focus on her law practice. Brianna has a strong moral compass and believes in quality over quantity. She treats every client as a top priority; thus, she will not take on many cases at a time because she wants to give each client the focus and attention they deserve. She has sharp attention to detail and is a forceful advocate for every client. Brianna has broad and extensive business experience; She is an entrepreneur and co-owner of a microtechnology manufacturing company that was built by her and her partner, where she also served as the Chief Legal Officer and Human Resource Manager for the company. While building the manufacturing business, she created a brokerage firm for business transactions and has managed several other businesses which she has ownership interest in. Brianna’s involvement in these various businesses over the past 15 years provides a unique skillset to her clients; Not only does she understand contractual principals and obligations from a legal perspective while drafting and negotiating agreements, but she also has the foresight, experience, and ability to ensure the agreement reflects the practical aspects of the business. Based on the client’s needs and desired outcome, she has the forethought to cover different angles that would be overlooked from a legal standpoint, and as a result she is able to help prevent unforeseen business ramifications. She conducts extensive risk assessments on behalf of her clients and minimizes exposure to potential liability without “over lawyering” agreements. Additionally, she specializes in drafting and negotiating agreements. Negotiation is a passion of hers which was applied in law school while she was a member of the Alternative Dispute Resolution Society, notably winning Touro Law School’s intraschool negotiation competition. In her more recent years, Brianna has removed herself from her various business interests to focus on her law practice. Brianna has a strong moral compass and believes in quality over quantity. She treats every client as a top priority; thus, she will not take on many cases at a time because she wants to give each client the focus and attention they deserve. She has sharp attention to detail and is a forceful advocate for every client.

Recent  ContractsCounsel Client  Review:
5.0

"Brianna gave me a very reasonable quote compared to other bids, and she's super responsible and thorough with her job, an absolute delight to work with, highly recommended!"

Paul S. on ContractsCounsel
View Paul
5.0 (18)
Member Since:
August 4, 2020

Paul S.

CEO
Free Consultation
Cincinnati, OH
40 Yrs Experience
Licensed in CA, OH
Boston University

I focus my practice on startups and small to mid-size businesses, because they have unique needs that mid-size and large law firms aren't well-equipped to service. In addition to practicing law, I have started and run other businesses, and have an MBA in marketing from Indiana University. I combine my business experience with my legal expertise, to provide practical advice to my clients. I am licensed in Ohio and California, and I leverage the latest in technology to provide top quality legal services to a nationwide client-base. This enables me to serve my clients in a cost-effective manner that doesn't skimp on personal service.

Recent  ContractsCounsel Client  Review:
5.0

"Was my great pleasure working with Paul. He is very knowledgeable about startups/companies, professional, wise, and supportive. I would highly recommend him."

Matthew S. on ContractsCounsel
View Matthew
4.9 (13)
Member Since:
August 5, 2020

Matthew S.

Attorney
Free Consultation
Flemington, NJ
42 Yrs Experience
Licensed in NJ, NY
Benjamin N. Cardozo School of Law (Yeshiva University)

I am a 1984 graduate of the Benjamin N Cardozo School of Law (Yeshiva University) and have been licensed in New Jersey for over 35 years. I have extensive experience in negotiating real estate, business contracts, and loan agreements. Depending on your needs I can work remotely or face-to-face. I offer prompt and courteous service and can tailor a contract and process to meet your needs.

Recent  ContractsCounsel Client  Review:
5.0

"Matthew was prompt and professional and satisfied all requirements of my request!"

Tim E. on ContractsCounsel
View Tim
4.8 (65)
Member Since:
August 12, 2020

Tim E.

Founding Member/Attorney
Free Consultation
Cleveland, OH
12 Yrs Experience
Licensed in OH
Cleveland State University College of Law

I am a business attorney focused on providing practical, targeted legal services for small businesses, startups, contractors, consultants, and service providers. I help clients efficiently review, draft, and improve everyday business contracts, including service agreements, NDAs, independent contractor agreements, vendor contracts, commercial leases, and purchase documents. My approach is straightforward: identify the terms that matter, explain risks in plain English, and deliver clear, usable edits or drafts without unnecessary complexity. I regularly handle fixed-fee, quick-turnaround projects such as contract reviews, agreement drafting, and demand or termination letters. While I offer streamlined, project-based services for routine matters, I can also assist with broader business legal needs as they arise.

Recent  ContractsCounsel Client  Review:
5.0

"Excellent experience with Tim on my relatively complex EULA for a suite of network appliance products. Tim was very fair with pricing, responsive, diligent, thorough, technically knowledgeable, took the time to address all my questions and concerns, and finished (with revision) on schedule and budget. Great experience overall and I'll definitely be using Tim for more work in the future with my business. I'll also be using Contract Counsel and recommending it to everyone I know as well! THANK YOU! -Devin"

Chester A. on ContractsCounsel
View Chester
Member Since:
July 21, 2020

Chester A.

Attorney
Free Consultation
Atlanta, GA
28 Yrs Experience
Licensed in GA, IN
University of Miami School of Law

With over 24 years of practice, Chet uses his vast experiences to assist his clients in the most efficient manner possible. Chet is a magna cum laude graduate of University of Miami School of Law with an extensive background in Business Law, Commercial Real Estate, Corporate Law, Leasing Law and Telecommunications Law. Chet's prior experience includes 5 years at two of the top law firms in Georgia and 16 years of operating his own private practice.

John S. on ContractsCounsel
View John
Member Since:
July 21, 2020

John S.

Managing Partner
Free Consultation
Dallas, TX
Experience less than a year

Steve Clark has been practicing law in DFW since 1980. He is licensed in both Texas and Louisiana state and federal courts. He concentrates his practice on business clients and their needs. He has been a SuperLawyer in Texas since 2011, and is Lead Counsel rated in Business Law. He is also a Bet the Company litigator in Texas.

Kamilah H. on ContractsCounsel
View Kamilah
Member Since:
July 25, 2020

Kamilah H.

attorney
Free Consultation
Long Beach, CA
17 Yrs Experience
Licensed in CA
Whittier Law School

I am a top-performing bi-lingual legal services professional with a proven record of success. Reputation of assessing and evaluating client’s needs and providing individualized solutions in line with those needs while efficiently handling multiple tasks simultaneously. Able to create a collaborative work environment ensuring business objectives are consistently met. Seeking an attorney role within a legal setting to apply skills in critical thinking, executive communications, and client advocacy.

Jessica K. on ContractsCounsel
View Jessica
Member Since:
January 16, 2021

Jessica K.

Litigation Attorney
Free Consultation
Florida
10 Yrs Experience
Licensed in FL
University of Florida Levin College of Law

I assist individuals and businesses across the state of Florida with litigation, contract drafting, contract interpretation, and issues that may arise because of contract terms, including demands (cease-and-desist letters) and litigation. I have experience with non-compete agreements, privacy policies, website terms, settlement agreements, intellectual property disputes, and many other disputes. Please reach out if I can help you with a litigation- or contract-related project!

Christopher J. on ContractsCounsel
View Christopher
Member Since:
August 4, 2020

Christopher J.

Attorney and Counselor at Law
Free Consultation
Ann Arbor, MI
27 Yrs Experience
Licensed in MI
Detroit College of Law at Michigan State University

Experienced attorney focusing on estate planning, probate administration, business formation and counseling, and consumer bankruptcy.

Find the best lawyer for your project

Browse Lawyers Now

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a dispute

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 22,767 reviews
CONTRACT LAWYERS BY TOP CITIES
See All Intellectual Property Lawyers
TRADE SECRET DISPUTE LAWYERS BY CITY
See All Trade Secret Dispute Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

Need help with a dispute

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 22,767 reviews

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city