Trade secrets can separate a company from its competitors. This information also falls into the category of intellectual property, and like tangible property, it is important that proprietary information is protected. In most cases, the protections come in the form of contracts restricting the use and disclosure of this information. However, some individuals may break contracts, and intellectual property litigation may result.
New York readers may be interested in lawsuits recently filed by Tesla in regard to the violation of nondisclosure agreements and other contract terms by former employees. Apparently, four former Tesla employees who have gone to work for rival company Zoox took confidential information from their time at Tesla and provided it to the rival company. Tesla claims that the information allowed Zoox to bypass years of work.
In a separate lawsuit, Tesla claims that another former employee took source code before suddenly resigning from the company. The employee apparently gave that information to another rival company, and as a result, Tesla claims that its investment has been put at risk. In this lawsuit, the company hopes to have the intellectual property returned and to prevent further exploitation.
Confidential information and trade secrets are often vital to companies when trying to stay ahead of their competitors. When former employees violate contracts and misappropriate information, intellectual property litigation may help New York companies address the wrongdoing. This legal action may help prevent further damage from occurring and may also give business owners the opportunity to seek compensation for the damages that have already occurred as the result of the IP theft.