Trade Secrets, Restrictive Covenants & Unfair Competition

In today’s digital age, with more employees working remotely and leaving their former employers for new opportunities, companies are facing new, advancing, and ever evolving trade secret and restrictive covenant challenges. We are here to help.

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Overview

Named a 2025 Recommended Firm for Trade Secret Litigation by IAM Patent 1000

Securing a company’s information and protecting its legitimate business interests are more crucial than ever. Without these protections, customer lists can be stolen and misused, product designs usurped and implemented by a competitor, pricing margins and strategic plans made publicly available, sophisticated algorithms and source code improperly downloaded and misappropriated, and other confidential data absconded with and then turned against the company. Thus, the failure to understand, navigate, and confront the depth of these challenges can cause the loss of valuable trade secrets, significant business harm, unwanted media attention, and potential breach of fiduciary duty allegations against management.

Benesch’s Trade Secrets, Restrictive Covenants, and Unfair Competition Group consists of attorneys from across the country and multiple practice groups (Labor & Employment, Litigation, and Corporate) who understand the importance of protecting a company’s valuable information and business interests. Combined, group members have over 100 years of experience in handling trade secret, restrictive covenant, and unfair competition matters. Two attorneys in the group have been ranked among the top 10 most active trade secret litigation lawyers in the country by Lex Machina’s 2024 Trade Secret Litigation Report. The group works collaboratively to share best practices, stay abreast of and exchange information on legal developments, and learn industry-specific information that enables them to maximize expertise and value when working to address and meet a client’s needs and goals. Many of the attorneys in the Trade Secrets, Restrictive Covenants, and Unfair Competition Group are nationally recognized as leading authorities in this area, and commonly write and speak about these matters before bar groups, business organizations, and governmental bodies. They also assist both state and federal legislators in drafting restrictive covenant and trade secret statutes.

The group organizes members around clients so that each client is comfortable with the consistency of representation, and the members are familiar with clients’ needs, goals, and business. We also keep clients apprised of significant changes in state and federal law, and regularly conduct no-cost “information sessions” with our clients in order to keep them up to speed on recent legal opinions and statutes that may affect their operations, activities, and trade secrets.

Recent studies estimate that publicly traded companies own approximately $5 trillion in trade secrets. Studies also show that the economic loss from trade secret theft is between $209 billion and $600 billion. No company is immune from trade secret theft, and Chief Executive Officers and corporate boards are looking to their in-house legal departments and outside counsel to help create and implement policies that maximize the protection of trade secrets and reduce the likelihood of trade secret theft.

Unlike most law firms, Benesch’s Trade Secrets, Restrictive Covenants, and Unfair Competition Group understands the importance of trade secret protection and, as such, has developed packages and programs that are specifically designed to help minimize the risk of trade secret theft and allow clients to receive the full value of trade secret protection. These packages and programs apply regardless of whether the thief is a disgruntled employee, a former business partner, or a competitor.

When necessary, group members also work with other Benesch departments and groups, such as the Data Protection and Privacy Group, in conducting forensic analysis to help design trade secret protection programs. 

We understand that there are times when litigation is necessary to protect a client’s trade secrets and legitimate business interests, or to fend off unwarranted claims of trade secret misappropriation or restrictive covenant violations. When this happens, and knowing that speed is key in these types of cases, the experienced team of trial lawyers in Benesch’s Trade Secrets, Restrictive Covenants, and Unfair Competition Group—lawyers who have litigated trade secret and restrictive covenant matters throughout the United States—jump into action by working with the client and forensic specialists to gather and preserve evidence, notify and work with relevant state and federal authorities, and file (or defend against) actions in state and federal court that seek temporary restraining orders, preliminary injunctions, expedited discovery, and permanent injunctions.  Not surprisingly then, Benesch’s Trade Secret, Restrictive Covenants, and Unfair Competition Group has obtained and defeated temporary restraining orders, preliminary injunctions, and permanent injunctions in state and federal courts located throughout the country, as well as in arbitration and alternative dispute resolution venues (such as FINRA).

Group members also understand the importance of recovering monetary and noneconomic damages in trade secret and restrictive covenant cases and, as a result, have obtained substantial trade secret and restrictive covenant jury verdicts on behalf of their clients. These successes have occurred in a wide range of industries, and for all sizes of companies, including, but not limited to, securities, pharmaceuticals, medical supplies and products, transportation, e-commerce, financial services, retail banking, healthcare, insurance, manufacturing, transportation, brokerage, real estate, and consumer goods. Not surprisingly, we also have an advanced understanding of the legal issues that recur from case to case, such as:

  • What constitutes irreparable injury.
  • Consideration for, and reasonableness of, restrictive covenants.
  • Legitimate business interests needed for the enforcement of a restrictive covenant.
  • Inevitable disclosure.
  • Electronic discovery and forensic computer analysis.

Knowing that time equals money in trade secret and restrictive covenant cases, Benesch’s Trade Secrets, Restrictive Covenants, and Unfair Competition Group is skilled at quickly and aggressively obtaining injunctive relief in time-sensitive situations. Indeed, the fact that our dedicated team members are intimately familiar with companies and their respective industries sets us apart from our competitors.

It also allows us the ability to seek enforcement of trade secret protections or restrictive covenants in a fast and efficient manner. Such activities include:

  • Investigating the facts and issues of a potential case through interviews and collaboration with forensic and computer experts.
  • Issuing cease and desist letters when appropriate.
  • Filing suit and seeking an injunction.
  • All aspects of expedited discovery.
  • When applicable, contacting and working with law enforcement.

Related Practices

Labor & Employment
Litigation
Trade Secrets Litigation

Services

Some of the services Benesch provides for its clients, from small businesses to Fortune 50 companies, include:

Audits

Assisting clients in conducting trade secret audits to determine the type of information amenable to trade secret protection and the protections that can be put in place to safeguard trade secrets in a manner consistent with the company’s structures, goals, environment, and culture.

Evaluation

Evaluating trade secrets and restrictive covenants as part of the due diligence process in an acquisition, and drafting agreements and implementing trade secret protections after the acquisition closes so that the company receives full acquisition value.

Education

Creating and implementing trade secret programs and educating employees on trade secret protection.

Agreement Analysis

Analyzing restrictive covenant and confidentiality agreements in order to assess the enforceability of the agreements.

Risk Assessment

Working with clients to gauge and, when necessary, minimize any trade secret or restrictive covenant risk resulting from hiring a competitor’s employee(s).

Updates

Providing clients with updates on important developments in trade secret and restrictive covenant law, including changes that necessitate new agreements, changes to data protection programs, and/or revised employee onboarding and separation procedures.

Experience

Helped obtain favorable settlement on the eve of trial for Fortune 100 technology company in trade secrets lawsuit involving enterprise collaboration software brought by former potential vendor.

Key Contacts: Christopher J. Letkewicz

Successfully defended a power manufacturing company against a competitor’s claims of trade secret misappropriation. After a two-week trial, the jury deliberated for ten minutes before finding for our client. The jury also found that the competitor brought its trade secret claims in bad faith, thereby allowing our client to recover seven figures in attorneys’ fees from the competitor.

Key Contacts: J. Scott Humphrey

Secured a jury verdict in state court defeating breach of contract and trade secret misappropriation claims, and prevailed on a counterclaim establishing that the plaintiff acted in bad faith, resulting in a full award of attorneys’ fees.

Key Contacts: John N. Dagon

Worked with our client and federal authorities to obtain a search warrant for, and obtain client information from, a competitor who illegally hacked our client’s computer systems.

Key Contacts: J. Scott Humphrey

Successfully prosecuted a preliminary injunction on behalf of a healthcare company and against a former employee who violated his noncompetition agreement.

Key Contacts: J. Scott Humphrey

Prosecuted two separate trade secret and restrictive covenant actions against former insurance agents that resulted in jury verdicts and a subsequent attorney’s fees award in favor of our clients.

Key Contacts: J. Scott Humphrey

Negotiated the turnover of confidential information and subsequent restrictive covenant restrictions on behalf of a food services client and against former employees who left the company to begin a competing business.

Key Contacts: J. Scott Humphrey

Represented a Fortune 500 logistics company in litigation against the former owners of an acquired company for corporate espionage, improper acquisition of computer software, and breach of noncompetition agreements. The case resulted in a permanent injunction in favor of our client and a seven-figure settlement payment to our client.

Key Contacts: J. Scott Humphrey

Prosecuted restrictive covenant violations before the American Arbitration Association on behalf of a credit card processing firm and against a former salesperson. Obtained injunctive relief and a six-figure arbitration award.

Key Contacts: J. Scott Humphrey

Prosecuted a preliminary injunction on behalf of a pharmaceutical company and against former employees who violated noncompetition agreements.

Key Contacts: J. Scott Humphrey

Successfully defeated competitor’s attempt to obtain temporary restraining order and then permanent injunction against Chief Executive Officer and third-party logistics company.

Key Contacts: J. Scott Humphrey

Successfully argued trade secret and restrictive covenant matter before United States Court of Appeals for Third Circuit on behalf of Fortune 50 client.

Key Contacts: J. Scott Humphrey

Conducted trade secret audit and worked with private equity firm on identifying potential trade secrets of cannabis grower in order to assess investment valuation and opportunity.

Key Contacts: J. Scott Humphrey

Represented Fortune 100 technology company in trade secrets lawsuit in California state court involving enterprise collaboration software brought by former potential vendor seeking in excess of $50 million dollars in damages. Helped obtain favorable settlement for a fraction of that amount on the eve of trial.

Key Contacts: James R. BedellChristopher J. Letkewicz

Obtained summary judgment for publicly traded critical infrastructure company in $100 million trade secrets lawsuit brought by former vendor.

Key Contacts: James R. BedellChristopher J. Letkewicz

Represented bankruptcy purchaser of assets of leading fast-casual restaurant chain in successful enforcement of trademark and trade secret rights against former franchisee.

Drafted restrictive covenant agreements for companies in the electronics, health care, financial services, insurance, pharmaceuticals, medical sales, and manufacturing industries.*

Key Contacts: J. Scott Humphrey

Developed a process for a financial services company to protect confidential information.*

Key Contacts: J. Scott Humphrey

Worked with insurance company to implement procedures and protocols for spotting restrictive covenant violations and enforcing restrictive covenants in state and Federal courts.*

Key Contacts: J. Scott Humphrey

Procured enforcement of restrictive covenant against former salesperson of processing company.*

Key Contacts: J. Scott Humphrey

Counseled senior executives and high net worth individuals regarding noncompetition, non-solicitation and other restrictive covenant provisions contained in various separation agreements.*

Key Contacts: J. Scott Humphrey

Defended medical sales representatives against allegations of restrictive covenant violations.*

Key Contacts: J. Scott Humphrey

Obtained a preliminary and then permanent injunction against insurance agents to enforce restrictive covenant and confidentiality obligations in multiple jurisdictions and obtained affirmation of injunctions from multiple Appellate courts.*

Key Contacts: J. Scott Humphrey

Defeated temporary restraining order brought against dairy services client accused of raiding competitor’s sales force.*

Key Contacts: J. Scott Humphrey

Defended media organization against breach of restrictive covenant and employee raiding allegations.*

Key Contacts: J. Scott Humphrey

Defended senior business leader in American Arbitration Association dispute over violation of employee non-solicitation clause.*

Key Contacts: J. Scott Humphrey

Defended manufacturing company against injunction brought by a competitor as a result of hiring competitor’s former business leader.*

Key Contacts: J. Scott Humphrey

Represented financial institution before FINRA arbitration panel regarding theft of confidential information by former employees.*

Key Contacts: J. Scott Humphrey

Represented financial institution before the National Association of Securities Dealers (now FINRA) in order to enforce non-solicitation and competition agreements signed by former employees.*

Key Contacts: J. Scott Humphrey

Worked with High Frequency Trading firm to enforce restrictive covenant obligations against former traders and senior executives.*

Key Contacts: J. Scott Humphrey

Obtained preliminary injunction against life insurance agent (and agent’s staff) who violated restrictive covenants and stole confidential information.*

Key Contacts: J. Scott Humphrey

Represented a commercial products manufacturer in defeating temporary restraining order and preliminary injunction brought by competitor alleging misappropriation of trade secrets and employee raiding.*

Key Contacts: J. Scott Humphrey

Defeated temporary restraining order and preliminary injunction motion brought by former President of financial services company.*

Key Contacts: J. Scott Humphrey

Procured preliminary and permanent injunctions throughout the United States that enforced restrictive covenant and confidentiality obligations against multiple insurance agents. Cases resulted in seven figure settlement for our client.*

Key Contacts: J. Scott Humphrey

Defeated temporary restraining order brought by a former employer (commercial products manufacturer) against two employees who left to form a competing business.*

Key Contacts: J. Scott Humphrey

Secured preliminary injunction against multiple agents and a competitor for illegally accessing computer systems and misappropriating trade secrets.*

Key Contacts: J. Scott Humphrey

Represented commercial insurance carrier in defeating temporary restraining order brought against carrier by a competitor alleging employee raiding and misappropriation of trade secrets.*

Key Contacts: J. Scott Humphrey

Defeated temporary restraining order and trade secret claims brought by National Beverage Manufacturer against its former Chief Marketing Officer and primary competitor.*

Key Contacts: J. Scott Humphrey

Obtained a temporary restraining order and preliminary injunction against an insurance agent for violating restrictive covenants. The case subsequently went to trial, and we obtained a favorable monetary settlement before the case was submitted to the jury.*

Key Contacts: J. Scott Humphrey

Represented a Fortune 100 electronics manufacturer in enforcing a noncompetition agreement signed by its former Chief Financial Officer. The case was successfully resolved after we obtained injunctive relief for the client.*

Key Contacts: J. Scott Humphrey

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