Misappropriation of Confidential Information

What is the misappropriation of confidential information?

Misappropriation of confidential information refers to the wrongful acquisition or disclosure of trade secrets, proprietary information, or other confidential data. It is a serious legal violation that can result in significant financial and reputational damage to the victim. In many cases, misappropriation of confidential information can also result in criminal charges.

Confidential information can include a wide range of data, such as business plans, customer lists, financial information, research and development data, and product designs. When an individual or organization obtains confidential information without authorization and uses it for personal gain or competitive advantage, it constitutes misappropriation.

There are multiple ways in which confidential information can be misappropriated. Here are some examples:

Cyber-Based Breaches

1. Hacking – Breaking into systems or networks to steal confidential data.
2. Social Engineering – Tactics like phishing or pretexting to trick people into giving up sensitive info.
3. Unauthorized Cloud Access – Accessing cloud services without authentication or approval.

Insider Threats

4. Employee Misuse – Unauthorized access by current or former employees.
5. Vendor Misuse – Third-party contractors exploiting access for unauthorized use.

Physical Security Breaches

6. Theft of Documents/Devices – Stealing paper files, USBs, hard drives, etc.
7. Improper Disposal – Throwing out documents/devices without secure destruction.
8. Eavesdropping – Intercepting phone calls, meetings, or digital communications

Technical Exploits

8. Reverse Engineering – Breaking down software/products to extract confidential elements.
9. Corporate Espionage – Spying tactics aimed at stealing proprietary business information.

What legal recourse is there for the misappropriation of confidential information?

The misappropriation of confidential information is a violation of both federal and state laws. The federal Defend Trade Secrets Act (DTSA) provides a civil remedy for the theft of trade secrets. Under the DTSA, individuals or companies can bring a civil lawsuit for trade secret misappropriation and seek damages, injunctions, and attorney’s fees.

To bring a successful claim under the DTSA, the plaintiff must show that they had taken reasonable measures to keep the information confidential, that the information had independent economic value, and that the defendant acquired, disclosed, or used the information without permission. The plaintiff may seek an injunction to prevent further use or disclosure of the confidential information, as well as damages for any harm suffered as a result of the misappropriation.

In addition to the DTSA, state laws also provide remedies for the misappropriation of confidential information. Many states have adopted the Uniform Trade Secrets Act, which provides similar protections to the DTSA. State law claims may also include breach of contract, breach of fiduciary duty, and unfair competition.

In Florida, the Florida Uniform Trade Secrets Act (“FUTSA”) provides similar legal protections for trade secrets. FUTSA defines trade secrets broadly and includes any information that derives economic value from not being generally known to the public or easily obtainable by others.

To bring a claim for misappropriation of a trade secret, it is necessary to demonstrate that the party has a trade secret or confidential information that requires protection. Additionally, it must be shown that reasonable measures were taken to safeguard the trade secret and confidential information. Lastly, it must be proven that a third party misappropriated the trade secret and/or confidential information without authorization. The violation of FUTSA can result in remedies such as monetary damages, injunctive relief, and recovery of attorney fees and costs.

Consult with Experienced Attorneys in Florida to Address the Misappropriation of Confidential Information

If you suspect that your confidential information has been misappropriated, it is essential to act quickly to protect your rights. The first step is to contact an experienced attorney who can advise you on the best course of action. Your attorney may recommend filing a civil lawsuit to seek damages, injunctive relief, and other legal remedies. TCLG has litigated many cases for the misappropriation of confidential information and is well-equipped to advise you on your available courses of action.