Enterprise Sues Former Employee for Alleged Misappropriation of Trade Secrets

Fierce competition leads companies in many industries to take steps designed to protect their trade secrets and other intellectual property. Trade secrets go well beyond examples like the formula for Coca-Cola or the designs for a new smartphone model. The proprietary systems and practices of a successful service company can also be subject to legal protection. 

A lawsuit filed federal court for the Northern District of Florida highlights how seriously allegations of trade secret theft are treated. On July 18, Enterprise Leasing Company South Central LLC filed a claim against former employee Simon Heller and the company where he now works, Step One Automotive Group. According to the complaint, Heller misappropriated information he learned at the automotive rental giant to help his new employer start a car-rental operation of its own. Enterprise contends that Heller's actions give Step One an unfair competitive advantage, jeopardizing the integrity and market position of Enterprise’s business operations.

To demonstrate a violation of the Defend Trade Secrets Act of 2016, Enterprise must show it took measures to shield specific confidential information from public view, and that the misappropriation of that information caused the company harm. General similarities between companies within a given industry will not suffice.  

Increased worker mobility and the ability to transmit large amounts of data instantly increases the attention on safeguarding trade secrets. Cases involving recently departed employees can be particularly complex, as a company’s right to protect its proprietary information must be balanced against an individual’s right to use their knowledge and experience to earn a living. Florida has recognized the increased focus on this issue by passing the CHOICE Act, which makes it easier for former employers to enforce noncompete agreements, even for up to four years after the worker leaves their job. 

Disputes over the alleged misappropriation of trade secrets, such as the case involving Enterprise, Simon Heller and Step One, can have high stakes. Failure to act quickly when an alleged breach occurs could be costly regardless of how the matter is eventually resolved. If you believe your company’s intellectual property has been misused, or if you have been accused of improperly exploiting someone else’s trade secret, you should reach out to a skillful business litigation attorney right away.

H. Clay Parker, Esq. The Florida Lawyer handles various types of business disputes for clients statewide. To discuss your situation and legal options with an accomplished litigator, please call [ln::phone] or contact us online. Our office is in Orlando.