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Use Trade Secrets Law to Protect Your Business -- While the FTC Considers Banning Non-Compete Agreements Nationwide

On January 5, 2023, the Federal Trade Commission (“FTC”) issued a proposed new rule banning non-compete agreements. The proposed rule seeks not only a ban of future non-compete agreements, but also the required rescission of existing agreements. The FTC sought public comment on the proposed rule before modifying the rule or issuing a final rule. It appears that any final rule by the FTC won’t be issued before the Spring of 2024. Serious legal challenges are expected if the FTC actually bans non-compete agreements nationwide.

Questions regarding the enforceability of non-compete agreements are currently left to the individual states. Louisiana non-compete law is crafted to create a “delicate balance” between business protection and protecting individuals. Non-compete agreements can be difficult to enforce in Louisiana. While enforceable, their use in Louisiana is limited to certain relationships and are only enforceable if drafted correctly.

With the potential ban of non-compete agreements pending, Louisiana businesses should rely upon trade secret law to protect their company. Louisiana’s Uniform Trade Secrets Act prevents a person or business from profiting from a trade secret developed by another. The threshold question in every trade secret dispute is whether a legally protectable trade secret actually exists. What information is considered a legally protectable trade secret?

The Operative definition appears in La. R.S. 51:1431(4). It provides:

(4) “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(a) derives independent economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use, and
(b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

How should businesses protect their sensitive trade secret information? First make sure that reasonable efforts have been taken to maintain the secrecy of that information, in order to qualify as a trade secret. Is it limited to “need to know” employees? Is it withheld from the general public? As an example, distributing price sheets to customers eliminates any trade secret protection regarding pricing. Additionally, readily ascertainable information is not subject to trade secret protection.

If your information qualifies as a trade secret subject to protection under Louisiana law, misappropriation of such information is actionable. What qualifies as misappropriation? Misappropriation includes the acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means. It also includes the disclosure or use of a trade secret of another without express or implied consent to do so.

In the competitive marketplace, it is critical for Louisiana businesses to protect their sensitive, trade secret information. Today’s efforts to maintain trade secret protection for your sensitive information will prove critical in later alleging misappropriation of your company’s most important information.

Use Trade Secrets Law to Protect Your Business -- While the FTC Considers Banning Non-Compete Agreements Nationwide

On January 5, 2023, the Federal Trade Commission (“FTC”) issued a proposed new rule banning non-compete agreements. The proposed rule seeks not only a ban of future non-compete agreements, but also the required rescission of existing agreements. The FTC sought public comment on the proposed rule before modifying the rule or issuing a final rule. It appears that any final rule by the FTC won’t be issued before the Spring of 2024. Serious legal challenges are expected if the FTC actually bans non-compete agreements nationwide.

Questions regarding the enforceability of non-compete agreements are currently left to the individual states. Louisiana non-compete law is crafted to create a “delicate balance” between business protection and protecting individuals. Non-compete agreements can be difficult to enforce in Louisiana. While enforceable, their use in Louisiana is limited to certain relationships and are only enforceable if drafted correctly.

With the potential ban of non-compete agreements pending, Louisiana businesses should rely upon trade secret law to protect their company. Louisiana’s Uniform Trade Secrets Act prevents a person or business from profiting from a trade secret developed by another. The threshold question in every trade secret dispute is whether a legally protectable trade secret actually exists. What information is considered a legally protectable trade secret?

The Operative definition appears in La. R.S. 51:1431(4). It provides:

(4) “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(a) derives independent economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use, and
(b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

How should businesses protect their sensitive trade secret information? First make sure that reasonable efforts have been taken to maintain the secrecy of that information, in order to qualify as a trade secret. Is it limited to “need to know” employees? Is it withheld from the general public? As an example, distributing price sheets to customers eliminates any trade secret protection regarding pricing. Additionally, readily ascertainable information is not subject to trade secret protection.

If your information qualifies as a trade secret subject to protection under Louisiana law, misappropriation of such information is actionable. What qualifies as misappropriation? Misappropriation includes the acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means. It also includes the disclosure or use of a trade secret of another without express or implied consent to do so.

In the competitive marketplace, it is critical for Louisiana businesses to protect their sensitive, trade secret information. Today’s efforts to maintain trade secret protection for your sensitive information will prove critical in later alleging misappropriation of your company’s most important information.

Use Trade Secrets Law to Protect Your Business -- While the FTC Considers Banning Non-Compete Agreements Nationwide

On January 5, 2023, the Federal Trade Commission (“FTC”) issued a proposed new rule banning non-compete agreements. The proposed rule seeks not only a ban of future non-compete agreements, but also the required rescission of existing agreements. The FTC sought public comment on the proposed rule before modifying the rule or issuing a final rule. It appears that any final rule by the FTC won’t be issued before the Spring of 2024. Serious legal challenges are expected if the FTC actually bans non-compete agreements nationwide.

Questions regarding the enforceability of non-compete agreements are currently left to the individual states. Louisiana non-compete law is crafted to create a “delicate balance” between business protection and protecting individuals. Non-compete agreements can be difficult to enforce in Louisiana. While enforceable, their use in Louisiana is limited to certain relationships and are only enforceable if drafted correctly.

With the potential ban of non-compete agreements pending, Louisiana businesses should rely upon trade secret law to protect their company. Louisiana’s Uniform Trade Secrets Act prevents a person or business from profiting from a trade secret developed by another. The threshold question in every trade secret dispute is whether a legally protectable trade secret actually exists. What information is considered a legally protectable trade secret?

The Operative definition appears in La. R.S. 51:1431(4). It provides:

(4) “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(a) derives independent economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use, and
(b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

How should businesses protect their sensitive trade secret information? First make sure that reasonable efforts have been taken to maintain the secrecy of that information, in order to qualify as a trade secret. Is it limited to “need to know” employees? Is it withheld from the general public? As an example, distributing price sheets to customers eliminates any trade secret protection regarding pricing. Additionally, readily ascertainable information is not subject to trade secret protection.

If your information qualifies as a trade secret subject to protection under Louisiana law, misappropriation of such information is actionable. What qualifies as misappropriation? Misappropriation includes the acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means. It also includes the disclosure or use of a trade secret of another without express or implied consent to do so.

In the competitive marketplace, it is critical for Louisiana businesses to protect their sensitive, trade secret information. Today’s efforts to maintain trade secret protection for your sensitive information will prove critical in later alleging misappropriation of your company’s most important information.

Use Trade Secrets Law to Protect Your Business -- While the FTC Considers Banning Non-Compete Agreements Nationwide

On January 5, 2023, the Federal Trade Commission (“FTC”) issued a proposed new rule banning non-compete agreements. The proposed rule seeks not only a ban of future non-compete agreements, but also the required rescission of existing agreements. The FTC sought public comment on the proposed rule before modifying the rule or issuing a final rule. It appears that any final rule by the FTC won’t be issued before the Spring of 2024. Serious legal challenges are expected if the FTC actually bans non-compete agreements nationwide.

Questions regarding the enforceability of non-compete agreements are currently left to the individual states. Louisiana non-compete law is crafted to create a “delicate balance” between business protection and protecting individuals. Non-compete agreements can be difficult to enforce in Louisiana. While enforceable, their use in Louisiana is limited to certain relationships and are only enforceable if drafted correctly.

With the potential ban of non-compete agreements pending, Louisiana businesses should rely upon trade secret law to protect their company. Louisiana’s Uniform Trade Secrets Act prevents a person or business from profiting from a trade secret developed by another. The threshold question in every trade secret dispute is whether a legally protectable trade secret actually exists. What information is considered a legally protectable trade secret?

The Operative definition appears in La. R.S. 51:1431(4). It provides:

(4) “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(a) derives independent economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use, and
(b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

How should businesses protect their sensitive trade secret information? First make sure that reasonable efforts have been taken to maintain the secrecy of that information, in order to qualify as a trade secret. Is it limited to “need to know” employees? Is it withheld from the general public? As an example, distributing price sheets to customers eliminates any trade secret protection regarding pricing. Additionally, readily ascertainable information is not subject to trade secret protection.

If your information qualifies as a trade secret subject to protection under Louisiana law, misappropriation of such information is actionable. What qualifies as misappropriation? Misappropriation includes the acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means. It also includes the disclosure or use of a trade secret of another without express or implied consent to do so.

In the competitive marketplace, it is critical for Louisiana businesses to protect their sensitive, trade secret information. Today’s efforts to maintain trade secret protection for your sensitive information will prove critical in later alleging misappropriation of your company’s most important information.

Use Trade Secrets Law to Protect Your Business -- While the FTC Considers Banning Non-Compete Agreements Nationwide

On January 5, 2023, the Federal Trade Commission (“FTC”) issued a proposed new rule banning non-compete agreements. The proposed rule seeks not only a ban of future non-compete agreements, but also the required rescission of existing agreements. The FTC sought public comment on the proposed rule before modifying the rule or issuing a final rule. It appears that any final rule by the FTC won’t be issued before the Spring of 2024. Serious legal challenges are expected if the FTC actually bans non-compete agreements nationwide.

Questions regarding the enforceability of non-compete agreements are currently left to the individual states. Louisiana non-compete law is crafted to create a “delicate balance” between business protection and protecting individuals. Non-compete agreements can be difficult to enforce in Louisiana. While enforceable, their use in Louisiana is limited to certain relationships and are only enforceable if drafted correctly.

With the potential ban of non-compete agreements pending, Louisiana businesses should rely upon trade secret law to protect their company. Louisiana’s Uniform Trade Secrets Act prevents a person or business from profiting from a trade secret developed by another. The threshold question in every trade secret dispute is whether a legally protectable trade secret actually exists. What information is considered a legally protectable trade secret?

The Operative definition appears in La. R.S. 51:1431(4). It provides:

(4) “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(a) derives independent economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use, and
(b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

How should businesses protect their sensitive trade secret information? First make sure that reasonable efforts have been taken to maintain the secrecy of that information, in order to qualify as a trade secret. Is it limited to “need to know” employees? Is it withheld from the general public? As an example, distributing price sheets to customers eliminates any trade secret protection regarding pricing. Additionally, readily ascertainable information is not subject to trade secret protection.

If your information qualifies as a trade secret subject to protection under Louisiana law, misappropriation of such information is actionable. What qualifies as misappropriation? Misappropriation includes the acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means. It also includes the disclosure or use of a trade secret of another without express or implied consent to do so.

In the competitive marketplace, it is critical for Louisiana businesses to protect their sensitive, trade secret information. Today’s efforts to maintain trade secret protection for your sensitive information will prove critical in later alleging misappropriation of your company’s most important information.

Use Trade Secrets Law to Protect Your Business -- While the FTC Considers Banning Non-Compete Agreements Nationwide

On January 5, 2023, the Federal Trade Commission (“FTC”) issued a proposed new rule banning non-compete agreements. The proposed rule seeks not only a ban of future non-compete agreements, but also the required rescission of existing agreements. The FTC sought public comment on the proposed rule before modifying the rule or issuing a final rule. It appears that any final rule by the FTC won’t be issued before the Spring of 2024. Serious legal challenges are expected if the FTC actually bans non-compete agreements nationwide.

Questions regarding the enforceability of non-compete agreements are currently left to the individual states. Louisiana non-compete law is crafted to create a “delicate balance” between business protection and protecting individuals. Non-compete agreements can be difficult to enforce in Louisiana. While enforceable, their use in Louisiana is limited to certain relationships and are only enforceable if drafted correctly.

With the potential ban of non-compete agreements pending, Louisiana businesses should rely upon trade secret law to protect their company. Louisiana’s Uniform Trade Secrets Act prevents a person or business from profiting from a trade secret developed by another. The threshold question in every trade secret dispute is whether a legally protectable trade secret actually exists. What information is considered a legally protectable trade secret?

The Operative definition appears in La. R.S. 51:1431(4). It provides:

(4) “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(a) derives independent economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use, and
(b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

How should businesses protect their sensitive trade secret information? First make sure that reasonable efforts have been taken to maintain the secrecy of that information, in order to qualify as a trade secret. Is it limited to “need to know” employees? Is it withheld from the general public? As an example, distributing price sheets to customers eliminates any trade secret protection regarding pricing. Additionally, readily ascertainable information is not subject to trade secret protection.

If your information qualifies as a trade secret subject to protection under Louisiana law, misappropriation of such information is actionable. What qualifies as misappropriation? Misappropriation includes the acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means. It also includes the disclosure or use of a trade secret of another without express or implied consent to do so.

In the competitive marketplace, it is critical for Louisiana businesses to protect their sensitive, trade secret information. Today’s efforts to maintain trade secret protection for your sensitive information will prove critical in later alleging misappropriation of your company’s most important information.