Michigan Business Lawyer Blog

For many "regular" businesses, a growing percentage of their value is made up of intangible assets like intellectual property and trade secrets. As these items grow in value, ensuring protection of your business's trade secrets is of the utmost importance to its success and future growth.

Trade secrets include such items as research and development data, customer lists and related information, financial data, and strategic plans and corporate information. It comes as a surprise to many business owners that one of the biggest threats to a business's trade secrets is its current and former employees. But, this makes sense when one considers that today's employees are more like free agents than long-term "franchise players."

It is imperative that businesses take the appropriate steps to guard and protect their trade secrets and confidential business information. The loss or theft of this information can be devastating to a business, especially if it is used by former employees to unfairly compete by undercutting their former employer's market position or to solicit their former employee's customers or clients.

Michigan law provides protection to businesses who are the victims of misappropriation of their trade secrets and confidential business information. If you are faced with the loss or theft of important business information, you should consult with an experienced Michigan trade secrets lawyer to assist you in enforcing your rights.

Posted by Michael J. Hamblin | Permalink | Email This Post

Posted In: Litigation , Trade Secrets Law

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I am often asked by clients (and prospective clients) how much protection a confidentiality agreement really provides. The answer: a lot. Confidentiality agreements are important tools that can be used to protect a company's trade secrets and proprietary information. Michigan state and federal courts routinely enforce properly drafted confidentiality agreements.

A recent example of this was provided by the U.S. District Court in Detroit. The case involved a breach-of-confidentiality lawsuit that Multimatic Inc. - a Canadian auto parts supplier -- brought against Faurecia Interior Systems U.S.A. Inc - a French auto parts supplier. The federal court awarded Multimatic nearly $10 million in damages against Faurecia.

The two firms entered into a confidentiality agreement in February 2004 under which Faurecia agreed to protect Multimatic’s design and technology for a proprietary crossbeam. Faurecia wished to use the crossbeam to install instrument panels in Chrysler’s JS program. The JS program is the code name for the replacement for the Chrysler Sebring and Dodge Stratus vehicles.

Faurecia breached the confidentiality agreement in April, 2005 when it solicited bids to manufacture Multimatic’s crossbeam design from Multimatic competitors. Multimatic sued Faurecia in June of 2005. The case went to trial in September of 2007.

Posted by Michael J. Hamblin | Permalink | Email This Post

Posted In: Trade Secrets Law

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Intellectual property law protects a business's trade secrets. Private information that gives a company an advantage over its competitors is called a trade secret. For example, customer lists, formulas, manufacturing processes, cost information, sources of supply, market studies, and compilations of financial data may be trade secrets. Michigan law protects trade secrets against infringement. A business may be able to obtain damages or an injunction if a competitor or ex-employee steals trade secrets from the company.

Continue reading "Michigan Law Protects Business Trade Secrets" »

Posted by Michael J. Hamblin | Permalink | Email This Post

Posted In: Trade Secrets Law

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