In July 2021, Hwaum Law Office was engaged by Client A, which had entered into a Non-Disclosure Agreement (NDA) with another company, to assess whether certain conduct constituted trade secret misappropriation and to advise on appropriate legal responses. Hwaum successfully completed the engagement.
The Unfair Competition Prevention and Trade Secret Protection Act (the “Unfair Competition Prevention Act”) sets out the legal definition of trade secrets, various forms of trade secret misappropriation, and available legal remedies.
Where there is a risk that a company’s trade secrets may be misappropriated, the company may seek a provisional injunction prohibiting an employee or former employee from joining a competing business*. As a result, trade secret disputes can have significant implications for both companies and their employees.
Drawing on Hwaum Law Office’s extensive experience with Non-Disclosure Agreements (NDAs), the Unfair Competition Prevention Act, non-compete agreements, and post-employment restrictions, Hwaum provided Client A with tailored advice on the most appropriate strategy for addressing the potential dispute and protecting its interests.
* A provisional injunction prohibiting employment with a competitor may be sought to restrict a current or former employee from taking employment in the same or a competing industry. In determining whether to grant such an injunction, courts generally balance various factors, including the employer’s legitimate business interests and the employee’s freedom to choose their occupation.
Author: Attorney Soon-kyo Kwon