Trade Secret Misappropriation Defense: Secured a No-Charge

1. Trade Secret Misappropriation New York Overview of the Accusation

The client sought legal assistance after being notified that prosecutors were reviewing a criminal complaint for trade secret misappropriation.We began by identifying the legal definitions of trade secrets in New York and the elements the prosecution would be required to prove. The former employer alleged that our client improperly acquired customer lists, pricing structures, and confidential sales strategies. Under New York common law and the federal DTSA, a customer list can constitute a trade secret if it derives economic value from not being publicly known. To address the risk of a trade secret misappropriation charge, our defense team evaluated whether the information met New York’s confidentiality criteria.We quickly recognized that the employer lacked documentation showing reasonable protective measures, which is a critical element under both New York precedent and DTSA standards.

Initial Evidence Review and Client Interview

During the initial inquiry, the client explained that all data remained on company-issued devices, which had been returned upon resignation.

This became a central point because trade secret misappropriation charges often hinge on proof of unauthorized copying or retention.

Our firm collected written handoff logs, email confirmations, and testimony from colleagues confirming the proper return of devices. These materials formed the foundation of our defense narrative.

2. Trade Secret Misappropriation New York Legal Standards and Burden of Proof

New York courts apply six factors to determine whether information qualifies as a trade secret: The extent to which the information is known outside the businessThe extent to which the information is known by employeesMeasures taken to guard secrecyValue of the information to the businessEffort or money expended in developing the informationEase or difficulty with which the information could be acquired by others Using these principles, we argued that the employer could not establish the existence of a protectable trade secret. This significantly weakened the potential trade secret misappropriation charge.

Requirements for Misappropriation

To pursue criminal liability, prosecutors must establish intentional acquisition, disclosure, or use of a trade secret without authorization.

We demonstrated that there was no evidence of downloading, forwarding, or otherwise retaining customer information.

Without proof of improper acquisition, a trade secret misappropriation prosecution could not proceed.

3. Trade Secret Misappropriation New York Defense Strategy and Evidence Development

Our firm’s strategy involved proactive collection of counter-evidence and presentation of mitigating factors. We secured statements from multiple long-term clients who independently chose to follow our client to his new employer. Their decisions were based on personal trust relationships, not on the use of confidential information. These communications helped refute the accusation of trade secret misappropriation based on inducement.We also presented device-forensics reports confirming no transfer of proprietary data.

Identifying Weaknesses in the Complaint

The complainant company alleged that sales volume declined after the client’s departure.

We showed that market-wide trends, not trade secret misappropriation, explained the decline.

In addition, their internal controls for confidential information were inconsistent.

Without protective measures, customer lists typically fail the legal definition required for criminal enforcement.

4. Trade Secret Misappropriation New York Case Resolution and Key Takeaways

Our firm presented a comprehensive memo to the District Attorney outlining each evidentiary gap. After reviewing our submission, the DA determined that the elements of trade secret misappropriation could not be met and issued a formal declination.

Essential Measures for Trade Secret Protection

For employees, resignation must be handled with clear documentation, device return verification, and transparent communication.

These steps greatly reduce the risk of future trade secret misappropriation claims.

And for businesses, failure to implement robust secrecy measures undermines protection of customer information.

Policies, NDAs, and access controls are essential.

In this case, prompt engagement allowed us to shape the investigative narrative before charges were filed.

In many trade secret misappropriation matters, early action can be the difference between arrest and dismissal.

We provide specialized legal counsel to protect your rights and achieve the best possible outcomes, starting from the critical pre-indictment stage.

If you are facing a trade secret misappropriation issue, do not hesitate “contact us” immediately for expert assistance.

25 Nov, 2025