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Leaked proprietary information can lead to contract disputes

To prevent pertinent company information from being shared with competitors, some employees are forced to sign a non-compete agreement. This agreement is designed to protect any trade secrets that employees may have had access to during their employ, and contract disputes can follow if it is violated. Texas businesses that are aware of a non-compete agreement and still choose to use information that is leaked from a former employee could face litigation.

Brand Services, a scaffolding manufacture, has filed a complaint in a federal court in another state against Irex Corporation. After one of Brand Services' IT specialists left the company, he chose to get another job at Irex. Since Irex was considered a direct competitor, this was allegedly in violation of the non-compete agreement that the specialist had signed.

Irex was allegedly aware of the non-compete agreement, but the company chose to hire the specialist anyway. According to the lawsuit, after being hired, the employee used a laptop that was issued to him by Brand Services to transfer data to an Irex cloud server. The information that he transferred was considered proprietary and confidential.

Brand Services is accusing Irex of violating the Louisiana Uniform Trade Secrets Act. The company is seeking monetary damages and legal fees as well as injunctive relief to prevent the stolen information from being used. Texas companies who allow employees to have access to trade secrets can have a consultation with an attorney who specializes in non-compete agreements to have one drawn up. Having these protections in place can help to prevent confidential information that is stolen from being used and can be instrumental in resolving contract disputes.

Source:, "Brand Services accuses former employee of sharing company's files", Robert Hadley, Dec. 4, 2015

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