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Q

What can I do about an employee who does not comply with a non-disclosure agreement?

Legal IntellectualViews10,068

I run a small company. Because security is somewhat important for our company, we drew up a non-disclosure agreement, but I found out that one employee, after leaving, started their own company using our company's core technology. I would be grateful if you could tell me how I can respond legally in such a case...

non-disclosure agreement

A

Answer to Related Inquiry

Hello. This is an attorney experienced in corporate law at Daeryun Law LLC.


A company's core technology or trade secrets are assets so important that they can determine the success or failure of the business.

Accordingly, many companies draw up non-disclosure agreements that impose a duty of confidentiality not only on current employees but also on former employees, but unfortunately cases of violating these often occur.

As in the matter you raised, where an employee who concluded a non-disclosure agreement, after leaving, uses the company's core technology without authorization to establish a business in a similar industry, the company can take several legal measures.

First, closely reviewing the contents of the non-disclosure agreement concluded with that employee must come first.

In particular, the definition of confidential information, the confidentiality period, and whether there is a clause stating that the duty of confidentiality continues even after leaving employment are important.

If such a clause is included, you can hold the employee legally liable for having violated the non-disclosure agreement and used the company's trade secrets or technology without authorization.

As a legal measure, you can first apply to the court for a provisional injunction in order to promptly block the employee's similar business activities or use of the technology.

This is used as an urgent protective measure to prevent the company's technology from being further leaked externally or used without authorization.

Subsequently, you can proceed with a civil lawsuit claiming compensation for the damage the company has suffered.

At this time, it is necessary to prove, with objective materials, matters such as the leaked technical data, the scale of the harm, and the business losses.


In addition, a criminal complaint under the Act on the Prevention of Unfair Competition and the Protection of Trade Secrets is also possible.


Daeryun Law LLC has attorneys experienced in corporate law who exclusively handle corporate trade secret infringement and technology leakage cases, as well as an evidence investigation center, and can respond in a one-stop manner, from investigating the circumstances of the technology leakage, collecting evidence, and establishing a legal response strategy, to provisional injunctions, criminal complaints, and claims for damages.


To protect your company's rights and interests, it is advisable to promptly consult with an attorney experienced in corporate law to organize the current situation and proceed with legal measures.

If you bring the relevant materials and a copy of the non-disclosure agreement when you attend the consultation, we will provide a specific legal review along with a response plan suited to the characteristics of the case.

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