Legal Question in Business Law in California

Re: proprietary software

Hello.

Did you employee sign an agreement to not disclose confidential information and/or not disseminate any trade secrets when he was hired?

Let me know, and I will follow up.

Arkady Itkin

[email protected]

Re: proprietary software

The list of possible causes of action depends to some extent on the nature of your claim to the software. If it were truly proprietary, you can probably make a case for misappropriation of trade secrets under California's version of the Uniform Trade Secrets Act, Civil Code sections 3426 et seq.

You might also have a copyright infringement case under federal or even state law.

Cases like this also usually contain facts that support other causes of action, including:

(a) Misappropriation of trade secrets with respect to client lists, business-opportunity information, or the like;

(b) Unfair competition, under the Business & Professions Code;

(c) Breach of the employee's employment agreeement; and

(d) Claims for tortious interference with the employer's contracts and economic/business prospects.

All former-employer claims have to be balanced against the ex-employee's absolute right to engage in any lawful business, trade or occupation, even in competition with a previous employer; this right does not, however, include the right to take the ex-employer's software or the sales manager's Rolodex.

I am currently handling a couple of cases in this area of law and would welcome the opportunity to look at your matter in greater detail.

(c)

Re: proprietary software

Since your title says proprietary software, I am making the assumption that this is software that you developed (as opposed to licensed). You have legal rights that can be protected, but the nature and extent of that protection depend on how you treated the software and what agreements exist. Even if you don't have a federal copyright, you have state common law copyright rights that can be enforced. If you treated the software as a confidential part of your business, you can protect it as a trade secret. You can also sue under other aspects of the unfair competition laws. Depending upon what agreements you have with the ex-employee, there may be breach of contract remedies. This is also basically a type of theft. Typically, an attorney evaluates all documents and other evidence and throws in everything (including the kitchen sink) that is appropriate and applicable in asking the court for relief. Among other things, you can ask for an immediate court order to stop the other company from using the software and continuing to benefit from your brainwork.