How To Avoid Allegations of Trade Secret Misappropriation in California
When departing a company, an executive, founder, or employee with access to trade secrets or confidential information may face legal allegations around whether they will use or disclose their former employer’s trade secrets at a competitor. Under California law, employers can enjoin threatened trade secret misappropriation before actual misappropriation has occurred under certain circumstances – so departing employees must be prepared to defend against claims.
California’s state and federal jurisprudence suggests that employees can best fend off a potential injunction by proving 1) that their former employer’s trade secret claims are meritless, and 2) that the balance of the parties’ equities favors denying an injunction. These cases present best practices for employees in these scenarios.
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