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Did your partner use trade secrets to start a new business?

On Behalf of | Jun 21, 2024 | commercial litigation

When a business partner leaves and uses proprietary information to start a new business, it can create significant challenges. In Texas, understanding your legal options and taking swift action is crucial to protect your business interests.

Review partnership agreements

First, review any partnership agreements or contracts in place. These documents may contain non-compete clauses, confidentiality agreements, or other terms that restrict the use of proprietary information. Ensuring these agreements are enforceable can be the first step in addressing the issue.

Document the breach

Gather evidence that your former partner is using proprietary information. This includes emails, documents, or witness statements that demonstrate the misuse of your business’s confidential data. 

Claiming privilege

Sometimes, you may need to assert claiming privilege over the proprietary information. This means formally stating that the information in question is confidential and protected by your business’s legal rights. Doing so can strengthen your position in any subsequent legal proceedings. You may also find it helpful to consult with an attorney, who understands the intricacies of protecting proprietary information. 

Consider commercial litigation

If negotiations fail, you may need to take legal action against your former partner to stop the misuse of proprietary information and seek damages for any losses incurred. Litigation can be complex and time-consuming, but it may be necessary to safeguard your business.

Dealing with a former partner who is misusing your proprietary information can be hard. But, taking quick action can protect your business. Understanding your options is crucial to resolving the situation effectively.