Unauthorized Disclosure of Technology

A violation generally involves the breach of a confidentiality agreement, employment contract, or fiduciary duty where an individual improperly accesses or disseminates proprietary data. Unlike general industry knowledge, the disclosed technology must have economic value derived from its secrecy to qualify for protection. Common examples include an employee downloading schematic drawings to a personal drive before resigning, or a vendor sharing a prototype design with a competitor. In New York, courts scrutinize whether the business took reasonable measures to keep the technology secret, making internal security protocols a key factor in defining the violation.

New York relies primarily on common law protections and contractual obligations to safeguard proprietary technologies, rather than a single state statute. However, the federal Defend Trade Secrets Act (DTSA) provides a robust statutory cause of action, allowing businesses to file lawsuits in federal court for Trade Secret Misappropriation. Additionally, New York Penal Law addresses offenses involving the unlawful use of secret scientific material. These laws collectively create a multi layered defense for proprietary information, ensuring that businesses have multiple legal avenues for recourse. Companies must stay updated on these provisions to effectively prosecute violations.

Affected parties may file a civil lawsuit for the unauthorized release of proprietary technology, seeking compensation for the damage done. Claims of trade secret misappropriation are common in these cases, and businesses can secure monetary damages as compensation for their loss. This can include not only the actual damages incurred but also the profits gained by the party who misappropriated the information, and in some cases, punitive damages. Injunctive relief, which is a court order to stop the unauthorized use or disclosure, may also be sought to prevent further harm. Pursuing Litigation is often necessary to enforce these rights fully

In cases where the unauthorized disclosure involves criminal actions, individuals may face criminal penalties such as imprisonment and substantial fines. New York laws impose severe punishments for anyone caught engaging in technology theft or industrial espionage which may require White Collar Defense & Investigations. The criminal justice system takes such offenses seriously, as they can have widespread economic consequences. The severity of the penalty often depends on the nature and value of the technology stolen, as well as the intent behind the act. Authorities investigate these matters rigorously to maintain market integrity.

Instead of pursuing lengthy litigation, businesses can explore alternative dispute resolution (ADR) methods such as mediation or arbitration to resolve technology leakage disputes. ADR can offer a more flexible, cost effective, and confidential way to reach a resolution, often preserving business relationships in the process. It provides a valuable alternative for companies that wish to avoid the public nature and high costs associated with court battles. Mediation involves a neutral third party mediator assisting in resolving disputes, while arbitration involves a binding decision by an expert. Dispute Resolution via these channels is often faster than traditional courts.

Technology leakage cases often involve complex legal issues that require specialized legal knowledge. Therefore, businesses or individuals facing accusations of technology theft should seek legal counsel from experienced attorneys in Intellectual Property and corporate law. These legal professionals can provide crucial guidance on navigating the legal system, building a strong case, and protecting the client's interests. They can help identify the best course of action, whether it is pursuing litigation, seeking ADR, or negotiating a settlement. Skilled counsel is the best defense against the theft of innovation.