Houston, TX Trade Secrets and Non-Compete Agreements
At Mahendru P.C., our attorneys handles a range of matters affecting individuals and businesses, including issues involving trade secrets and non-compete agreements. We work closely with our clients to determine the best way to protect their confidential and proprietary information.
Confidential information, including customer lists, formulas, and methods of doing business, can be critical to a business’s ability to stay competitive in the market.
One of the most effective and least expensive ways to protect proprietary information is by designating it as a trade secret and protecting it through non-compete and non-disclosure agreements.
What Are Trade Secrets?
A trade secret is defined as any information that provides a business with a competitive edge and isn’t generally known to the public.
The most common trade secret definition also specifies that a company must make a reasonable effort to keep the information confidential. A wide range of proprietary information can fall under the umbrella of a trade secret.
Trade Secret Examples
Here are some common trade secret examples:
- Proprietary Formula or Process: Such as a unique manufacturing technique, software algorithm, or recipe
- Customer Lists and Pricing Data: Gives businesses a competitive advantage
- Business Strategies or Marketing Plans: Includes unreleased product details or strategies
- Technical Data or Designs: Engineering schematics or prototypes
At Mahendru P.C., we help clients identify and protect these assets through legally enforceable documents, such as non-compete clauses. The goal is to make sure your trade secret remains secure while giving you the ability to take action if someone violates an agreement.
What Are Non-Compete Agreements? Are They Legal?
A non-compete agreement is a contract that restricts an employee or business partner from engaging in competitive activities.
For instance, a non-compete agreement may prevent someone from going to work for one of your rivals for a set number of years after leaving your company. Many of these agreements also prohibit employees and former employees from starting a competing business.
Are non-competes enforceable? The answer depends on state law.
Some states, like Texas, enforce non-compete agreements as long as they meet certain criteria. Your contracts must be reasonable in scope, duration, and geographic area. Other jurisdictions limit the scope of non-competes, while a few prohibit them entirely.
However, like many contracts, non-compete agreements are subject to a statute of limitations. In Texas, you have up to four years to file a claim for breach of contract in court. If you weren’t aware of the violation right away, the clock starts ticking on the day you learned about the breach.
How the Legality of Non-Compete Agreements Is Changing
In 2024, the Federal Trade Commission announced a new rule that would effectively prohibit new non-compete agreements while nullifying all current ones. A U.S. district court issued an order that stopped the FTC from enforcing the rule, and litigation is ongoing. If the FTC wins the case, it could mean the end of non-compete clauses.
Our firm is carefully monitoring this and other developments related to non-competes, NDAs, and other contractual clauses used to protect trade secrets. We’re committed to staying up-to-date on the latest regulations to ensure that your agreements are enforceable and effective.
Our Case Results
Our attorneys can assist you with setting up preventative measures that will secure your trade secrets and confidential information. Some of our cases include:
- Sued a major hospital system for poaching physicians from a well-established, integrated medical group practice for theft of trade secrets
- Successfully represented a General Counsel in a fortune 500 company accused of taking company confidential information
- Successfully represented physician group to prevent competing physicians from stealing patients, equipment, staff, and office space in direct violation of their non-compete agreementsSuccessfully represented Juan Pablo Diaz Cuenca, a paralegal, who was sued by his former employer, an immigration law firm. His employer claimed Cuenca took the law firm’s trade secrets with regard to how to practice immigration law. After being sued in state court, the case was then removed to federal court, but later found its way into arbitration. After his former employer was ordered to provide its deposition, the firm made the decision to abandon its claims against Juan Pablo, resulting in a complete vindication of Juan Pablo’s position.
- Our team represented two former employees of a demolition company who left their employment to start their own business, Elite Demolition. Knowing the two former employees would have limited to no resources to fight a lawsuit, the former employer sued and tried to obtain a temporary injunction against Elite. Our team defeated the injunction and obtained a summary judgment finding that the non-compete agreements were fatally flawed and unenforceable. With that major ruling in hand, the case was quickly dismissed in our client’s favor.
Our firm deftly handles cases where there has been a theft of trade secrets or a disclosure of the company’s confidential and proprietary information. In these cases, we work with our clients to quickly seek injunctions to prevent the disclosure of trade secrets and other confidential and proprietary information belonging to a company.
Satisfied clients describe our trade secrets attorneys as “creative thinkers” and appreciate that we want to win as badly as they do.
Agreements Used to Protect Trade Secrets
If a competitor or any other entity tries to profit off of your intellectual property, our seasoned litigators can use the state, federal, and international civil courts to mitigate the damage. Among the tools that we use to protect our clients’ proprietary information are:
- Non-disclosure agreements
- Non-compete covenants
- Patents, Trademarks, and Copyrights
- Injunctions, cease-and-desist orders
- Arbitration
- Courtroom litigation
We can pursue cases in the state of Texas, throughout the United States, and even in the international courts.
How Our Experienced Attorneys Can Help You Protect Trade Secrets and Confidential Information
Safeguarding your trade secrets and enforcing non-compete agreements requires a proactive, strategic approach. Our firm brings decades of experience to deliver results in complex cases. Here’s how we protect your interests:
Proactive Protection Strategies
Trade secrets are your organization’s key differentiator, which is why you need to protect them with enforceable and binding contracts. We’ll work with you to develop ironclad agreements and policies that prevent disputes before they arise.
Our proactive services include:
- Drafting enforceable contracts, such as NDAs and non-compete agreements
- Advising on best practices to protect trade secrets
- Identifying vulnerabilities in your intellectual property protections and addressing them proactively
Using strong, enforceable contracts will help you defend your trade secrets and demonstrate to new employees that you’re serious about privacy.
Aggressive Litigation and Defense
When disputes arise, our team is ready to act. We handle all of the following:
- Injunctions and Restraining Orders: These actions stop the misuse of trade secrets or breaches of non-compete agreements
- Litigation and Arbitration: We represent clients in court or alternative dispute resolution to secure favorable outcomes
- Defense Against Claims: We protect businesses facing allegations of trade secret misappropriation or non-compete clause violations
Acting fast will allow you to minimize the damage caused by NDA or non-compete violations. If you believe someone is using your company’s confidential information to damage your brand or achieve unjust personal gain, contact Mahendru P.C. immediately.
Tailored Counsel for Your Business
Every business is unique. We’ll take the time to understand your operations, industry, and goals to ensure that our approach aligns with your priorities. Additionally, our team will thoroughly review all relevant contracts and clauses to enforce the terms of your agreements.
Whether you need to protect a groundbreaking innovation or defend against the rogue actions of a departing executive, we deliver personalized solutions. The first step is to connect with our legal team and book a consultation.
Trust Mahendru P.C. to Safeguard Your Trade Secrets
Don’t let trade secrets or unenforced non-compete agreements jeopardize your competitive edge. The skilled legal team at Mahendru P.C. is here to provide the strategic counsel and aggressive representation you need to safeguard your business.
Our experienced attorneys are ready to draft enforceable agreements, protect proprietary information, and litigate disputes with precision.
Ready to secure your intellectual assets? Contact us to schedule an appointment. We offer free initial consultations and flexible scheduling options to oil and gas companies throughout the Houston area.