Starting your own business after leaving a job can be exciting. However, it can also bring legal challenges, especially if your former employer accuses you of using its trade secrets. One effective way to protect yourself and your new company is by building it from a “clean slate.”
As a new entrepreneur, it is best to develop new products or services without using any proprietary information from your previous employer. This ensures that your new business is free from trade secret contamination and creates a clear separation between your old and new work.
The California Trade Secrets Act and the federal Defend Trade Secrets Act of 2016 protect employers’ trade secrets. If your former employer sues you for trade secret theft, you want to ensure there is no evidence that your new business used your former employer’s protected information.
Here are three ways to build your new business from a clean slate:
Hire independent developers: Engage developers who have no connection to your previous job. This reduces the risk of unintentionally using trade secrets.
Document everything: Keep detailed records of the development process. Document who worked on what and when. This can serve as evidence that your work is original.
Train your team: Educate your employees about trade secret laws and the importance of maintaining a clean slate. Make sure they understand the legal risks involved.
Seeking legal help
Building a business from scratch can be complex, but it can prevent potential legal complications. If you face a trade secret lawsuit, it is crucial to get legal advice. An attorney experienced in intellectual property law can guide you through the process and help protect your new business.
Having a clean slate is valuable when starting a new business after leaving a job. It helps ensure that your new company is free from trade secret contamination and can defend against legal claims. While this can be complex, it is always better to be safe than sorry.The post How to ensure your new business is free from trade secret contamination first appeared on Lawrence G. Townsend, Intellectual Property Lawyer .
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