US Legal Forms
Legal Resources
Questions & Answers
Consumer
How do I prevent future employees from stealing ideas from my company?

How do I prevent future employees from stealing ideas from my company?

Full question:

I had a former employee steal a company secret (or device I specifically made and invented) and is now making the product and using it to make personal profit. I had no contract prohibiting this with the employee. How can I protect this from continuing? Is there a law that employees cannot steal secret company information and designs for personal gain?

Category: Consumer
Subcategory: Unfair Practices or Competition
Date: 04/07/2025
State: California

Answer:

Misuse of a trade secret may be stopped through an injunction issued by the court. An injunction is an offficial order requiring someone to do or refrain from doing an act. Money damages may also be recovered.

Please see the California statutes at the following link:

http://www.leginfo.ca.gov/cgi-bin/waisgate?WAISdocID=25136328178+1+0+0&WAISaction=retrieve

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How do you prove employee theft?

To prove employee theft, you need to gather evidence showing that the employee took company property or information without permission. This may include documentation, witness statements, or surveillance footage. You should also show that the employee had access to the property or information and that their actions were intentional. If the theft involves trade secrets, you may need to demonstrate that the information qualifies as a trade secret under applicable laws, such as California Civil Code § 3426. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

What is it called when an employee steals information from a company?

When an employee steals information from a company, it is often referred to as 'corporate espionage' or 'trade secret theft.' This illegal act involves taking confidential information or proprietary data without authorization for personal gain or to benefit a competitor. Such actions can lead to legal consequences under laws protecting trade secrets, like those found in California Civil Code § 3426. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

What to do if an employee steals intellectual property?

If an employee steals intellectual property, you should first document the theft and gather any evidence, such as emails or files. Next, consult with a legal professional to explore your options, which may include seeking an injunction to prevent further misuse and pursuing damages. Depending on the situation, you may also consider reporting the theft to law enforcement if criminal activity is involved. Protecting your intellectual property is crucial, and laws like California Civil Code § 3426 provide legal recourse for such violations. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*