Suing a former employee and his or her new employer for trade secret theft can be a bit of a Catch-22, according to Mark Temple and Peter Stuhldreher of Reed Smith. “An important consideration in deciding whether to sue the new employer and your competitor is whether it is worth the risk that you may be forced to disclose the very trade secrets you were trying to protect,” they say.

A recent case demonstrates this challenge. M-I SWACO was suing National Oilwell Varco for trade secret theft. During the preliminary injunction, M-I asked the judge if the representative from NOV could be made to leave the courtroom during the discussion of the actual trade secrets. The judge denied this request, instead telling NOV not to use or disclose the trade secrets. This decision is being appealed to the Texas Supreme Court.

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