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Keystone Dental settles UTSA claim for $2 million

If you are not familiar with the Uniform Trade Secrets Act (UTSA) and you are in business, perhaps, now is the time. UTSA claims are on the rise and the damages that can be paid out on these claims tend to be huge. They can include double damages, attorney’s fees and an injunction prohibiting the conduct at issue.

Here, Nobel Biocare sued Keystone Dental alleging a systematic targeting and hiring of Nobel’s sales and marketing employees. Nobel also alleged that Keystone aided and abetted employees to violate confidentiality and non compete agreements. According to Nobel Biocare, these employees were using trade secrets to develop competitive products and induce Nobel’s customers to switch to Keystone Dental. To read more, click here.

The Bottom Line:

If you are approached by an employee, or prospective employee, who wants to share trade secrets, confidential data or proprietary information belonging to a competitor, stop right there and call your lawyer. Don’t think that just because there may not be a non-compete, confidentiality or non-solicitation agreement that you are on easy street. The UTSA could be used by the your competitor even though there isn’t a written prohibition against disclosure. This is one of those instances, where sound judgement means to let your lawyer guide you through this minefield. It is time and money well spent.

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