Legal Question in Business Law in Maryland

Use of Customer Lists

After 7 years of employment with an auto dealer I have taken a position with another dealer within the same marketing area. During my employment with the orginal dealer I paid for the upkeep and maintance of my Customer Base through a third party. The information included name, address, phone numbers, purchase date, type of car and birthdate. Payment for the service was handled through my employer and deducted from my Commission paycheck. The cost of the list per year is about $800. The list only includes customers that I have sold cars to.

My former employer has threated legal action if I do not return the list under the Uniform Trade Secrets Act.

My question is who owns the list? If I paid for the list then isn't the customer list my property? If I use the list to contact my customer base to let them know that I have taken another position with another company am I breaking the law?


Asked on 2/10/05, 9:09 am

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: Use of Customer Lists

Unless your employment agreement with the former dealer prohibited you from doing so, and possibly even if it did, you have every right to notify your customers of your new situation. The trade secrets law is designed to protect an employer from having information unique to that business from being used to its disadvantage when an employee who is provided with this information (like a "secret formula" or unique marketing plan)goes to a competitor or starts his own business. The key is was the information intended to be kept secret and was it not available from any other source. In your case, since you actually paid for this list, you can claim ownership and certainly the right to use it.

Read more
Answered on 2/10/05, 9:37 am


Related Questions & Answers

More Business Law questions and answers in Maryland