What to Do When Your Business Faces a Lawsuit Over Trade Secrets or Intellectual Property Theft

If your business has been accused of stealing trade secrets or misusing intellectual property, your first reaction is probably a mix of confusion, frustration, and concern about what this could mean for your company’s future. That reaction is completely normal.

These lawsuits move fast, they carry serious financial risk, and they can threaten the core of what you have built. The good news is this: being accused does not mean you are guilty, and how you respond early can make a major difference in how the case unfolds.

This article walks through what trade secret and intellectual property lawsuits typically involve, what you should do immediately, and how Florida businesses can protect themselves when these claims arise.

What Is a Trade Secret Lawsuit?

A trade secret lawsuit usually claims that your business improperly used confidential business information belonging to someone else. Under Florida law, trade secrets can include things like:

• Customer lists
• Pricing models
• Proprietary software or algorithms
• Manufacturing processes
• Business strategies or internal systems

To succeed, the other side must prove that the information was genuinely secret, that reasonable steps were taken to protect it, and that your business acquired or used it improperly.

Not every business idea or internal document qualifies as a trade secret. That distinction matters, and it is often one of the first pressure points in these cases.

Intellectual Property Theft Claims Explained

Intellectual property lawsuits are broader than trade secrets. They often involve allegations related to:

• Copyright infringement
• Trademark misuse
• Misappropriation of proprietary materials
• Ownership disputes over developed content or technology

In many cases, these disputes arise after employees leave a company, partnerships fall apart, or competitors enter the same market using similar tools or branding.

What looks like “theft” on paper is sometimes a contract dispute in disguise. Determining which it is requires a careful legal and factual analysis.

What Should You Do Immediately If Your Business Is Sued?

Do Not Contact the Other Side Directly

Even if you believe the claim is baseless, do not attempt to explain or justify your actions directly to the opposing party. Informal conversations can easily be mischaracterized later.

Preserve All Relevant Documents

Emails, contracts, internal messages, code repositories, employee agreements, and access logs all matter. Deleting or altering information can severely damage your defense.

Review Employee and Contractor Agreements

Many trade secret and IP cases hinge on non-disclosure agreements, confidentiality clauses, or ownership provisions in employment contracts. These documents often decide who actually owns what.

Involve a Business Litigation Attorney Early

Early strategy matters in these cases. Injunctions, emergency hearings, and accelerated discovery are common, especially when trade secrets are alleged.

Can a Former Employee Trigger a Trade Secret Lawsuit?

Yes, and this is one of the most common scenarios we see. Trade secret disputes frequently arise when a former employee joins a competitor or starts a new business. The question is not whether the employee can use their general knowledge or skills. They can. The question is whether protected confidential information was taken or used.

Florida courts recognize the difference between experience and proprietary data. Proving that difference requires evidence, not assumptions.

What Are the Risks If the Lawsuit Succeeds?

Depending on the case, the consequences can include:

• Court orders stopping certain business activities
• Significant monetary damages
• Attorney’s fees
• Forced changes to products, software, or operations
• Reputational harm

This is why trade secret and intellectual property claims must be handled with urgency and precision.

Common Defenses to Trade Secret and IP Theft Claims

Every case is fact-specific, but common defenses include:

• The information was not actually confidential
• The information was publicly available or widely known
• The plaintiff failed to protect the alleged trade secret
• The information was independently developed
• Contract terms do not support the ownership claim

In many cases, these disputes are resolved long before trial through targeted motions or negotiated resolutions once the legal weaknesses become clear.

How Florida Businesses Can Reduce Risk Going Forward

Even if you are already facing a lawsuit, it is worth addressing future risk. Strong internal controls help prevent repeat issues and strengthen your position in court.

Best practices include:

• Clear confidentiality and IP ownership clauses
• Exit protocols for departing employees
• Access controls for sensitive data
• Regular contract reviews
• Defined policies for collaboration and development

Courts pay close attention to how businesses protect their information. Preparation matters.

When to Talk to a Lawyer

If your business has been accused of trade secret theft or intellectual property misuse, the worst thing you can do is wait and hope it goes away. These cases tend to escalate quickly, and having a clear legal strategy in place early on can protect your company, your relationships, and your future growth.

If you are facing this situation, contact an experienced attorney in Miami at 305-570-2208.

You can also contact attorney Eduardo A. Maura at eduardo@ayalalawpa.com.

Schedule a case evaluation online here.

[The opinions in this blog are not intended to be legal