In today’s competitive business landscape, protecting your company’s trade secrets is more crucial than ever. Florida businesses have a powerful tool at their disposal: the Florida Uniform Trade Secrets Act (FUTSA). This article provides an overview of FUTSA and explains the remedies available for misappropriation of trade secrets under the act.
What is FUTSA?
The Florida Uniform Trade Secrets Act, codified in Chapter 688 of Title 39 of the Florida Statutes, is designed to protect businesses from the misappropriation of their trade secrets. The FUTSA defines what constitutes a trade secret under Florida law and provides a legal framework for businesses to take action against those who misappropriate their confidential information.
What Qualifies as a Trade Secret?
Under the FUTSA, a trade secret is defined as information, including a formula, pattern, compilation, program, device, method, technique, or process that:
1. Derives actual or potential independent economic value from not being generally known and readily ascertainable by other persons who can obtain economic value from its disclosure or use; and
2. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
This broad definition covers a wide range of valuable business information, from customer lists and pricing strategies to manufacturing processes and software algorithms.
Misappropriation of Trade Secrets
The FUTSA provides protection against the misappropriation of trade secrets, which can occur through:
1. Wrongful Acquisition: Acquiring a trade secret through improper means, such as theft, bribery, misrepresentation, or espionage by a person who knows or has reason to know that the trade secret was acquired by improper means.
2. Wrongful Use or Disclosure: Using or disclosing a trade secret without consent, by a person who used improper means to acquire it, knew or had reason to know the information was a trade secret and that the knowledge of it had been acquired by accident or mistake, or at the time of disclosure, knew or had reason to know that his or her knowledge of the trade secret was acquired through improper means, or under circumstances giving rise to a duty of secrecy.
Remedies Under FUTSA
If your business’s trade secrets have been misappropriated, the FUTSA provides several powerful remedies:
1. Injunctive Relief (§ 688.003, Fla. Stat.):
– A court can issue an injunction to prevent actual or threatened misappropriation.
– In exceptional cases, an injunction can provide for future use to be conditioned on payment of a reasonable royalty.
2. Damages (§ 688.004, Fla. Stat.):
– Actual losses caused by misappropriation can be recovered.
– Unjust enrichment gained by the misappropriator can be awarded.
– In lieu of other measures, damages may be calculated based on a reasonable royalty.
– If a plaintiff proves the existence of willful and malicious misappropriation, exemplary damages up to twice the amount of actual damages may be awarded.
3. Attorney’s Fees (§ 688.005, Fla. Stat.):
– If a misappropriation claim succeeds, a court may award attorney’s fees if it finds that the misappropriator acted willfully or maliciously. On the other hand, if a FUTSA claim is brought in bad faith, a court may award attorney’s fees to the prevailing party. The court may also award attorney’s fees if a motion to terminate an injunction is made or resisted in bad faith.
Statute of Limitations
It’s important to note that FUTSA has a three-year statute of limitations. An action for misappropriation must be brought within three years after the misappropriation is discovered or should have been discovered by the exercise of reasonable diligence.
Speak With an Experienced Attorney
The Florida Uniform Trade Secrets Act provides robust protection for businesses seeking to safeguard their valuable confidential information. By understanding the act’s provisions and available remedies, Florida businesses can take proactive steps to protect their trade secrets and respond effectively if misappropriation occurs. If you believe your trade secrets have been misappropriated, consult with an experienced intellectual property attorney to explore your options under the FUTSA.
Contact us today to speak with an experienced attorney and schedule a consultation!
About the Authors
Giulia Farrior represents ADD+G clients out of the firm’s Miami office and has experience representing individuals and organizations in federal courts in all phases of intellectual property litigation involving trademarks, trade secrets, copyrights, and patents. Giulia also advises clients concerning trademark acquisition and counseling matters and has assisted in drafting various intellectual property agreements.
