When a business dispute escalates into litigation, the discovery process that follows can expose exactly the kind of sensitive information that gives a company its competitive edge. Customer lists, pricing models, manufacturing processes, software source code, and proprietary formulas are all categories of information that may become relevant in litigation and that competitors would pay to obtain. Knowing how to protect this information while the case proceeds is a challenge that deserves attention before the lawsuit begins.
What Qualifies as a Trade Secret in Maryland
Maryland adopted the Maryland Uniform Trade Secrets Act, codified at Maryland Code, Commercial Law § 11-1201, which defines a trade secret as information that derives independent economic value from not being generally known or readily ascertainable by others, and that is subject to reasonable efforts to maintain its secrecy.
The definition is broader than many business owners initially realize. Pricing strategies, supplier relationships, customer acquisition methods, and internal financial models can all qualify if they meet the statutory requirements. The key is that the company must have actually taken steps to protect the information, not simply assumed it would stay private.
An Ellicott City business litigation lawyer can evaluate which of your company’s information qualifies for protection under Maryland law and what steps you need to take to establish and maintain that protection before and during litigation.
Protective Orders in Litigation
The most common mechanism for protecting sensitive business information during litigation is a protective order issued by the court. A protective order can limit who is permitted to view designated confidential documents, restrict how those documents may be used, require that confidential filings be submitted under seal, and prohibit disclosure to the opposing party’s other employees or affiliates beyond designated counsel.
Negotiating the scope of a protective order is itself a significant undertaking. The opposing party may resist broad protections or seek exceptions that would effectively defeat their purpose. Having litigation counsel involved from the beginning of the discovery phase is important for establishing the appropriate scope and enforcing it when violations occur.
Pre-Litigation Steps That Matter
Some of the most effective trade secret protections are put in place before any litigation begins. Companies that have clearly identified their trade secrets, implemented confidentiality agreements with employees and contractors, used non-disclosure agreements with business partners, and restricted access to sensitive systems and information on a need-to-know basis are in a significantly stronger position when litigation arises.
When a dispute is on the horizon, conducting a quick audit of these protections can identify gaps that need to be addressed before a lawsuit is filed or before discovery begins. Steps worth reviewing include:
- Whether key employees have signed enforceable confidentiality agreements
- Whether NDAs with vendors and partners are current and cover the relevant information
- Whether digital access controls limit exposure of proprietary systems to authorized users
- Whether departure protocols for employees address return of company information
Eric Siegel Law brings decades of experience in business, commercial, and civil rights litigation to clients facing these challenges in Maryland and the greater DC area.
If your business is involved in or approaching litigation that puts sensitive proprietary information at risk, speaking with an Ellicott City business litigation lawyer about how to protect your trade secrets throughout the proceedings is a practical and important step to take early.