Protection of confidential corporate information is essential to a company's capacity to develop products, provide services, and gain economic advantages. Those who wrongfully acquire, misuse, or disclose confidential company information can cause significant damage by impairing or destroying the value of the information. Jawbone and Fitbit are currently embroiled in at least three lawsuits initiated by Jawbone to protect their trade secrets and patented designs.

According to Jawbone's recently filed complaint in San Francisco Superior Court, recruiters for Fitbit contacted nearly one-third of Jawbone's employees in early 2015 in an attempt to lure employees to Fitbit (see Aliphcom, Inc., d/b/a Jawbone v. Fitbit, Inc., (Cal. Super. Ct. May 27, 2015)). As a result, at least five Jawbone employees joined Fitbit. Before leaving Jawbone, these employees allegedly downloaded Jawbone's proprietary information including current and future business plans and products. The employees allegedly used thumb drives to download files and then used software programs to cover their tracks and delete system logs. In addition to Fitbit, Jawbone's complaint names the five former employees as individual defendants.

On October 13, 2015, the Superior Court granted Jawbone's motion for preliminary injunction demanding that the former Jawbone employees hand over any trade secrets that they allegedly stole and ordering the employees to prove that they deleted any remaining copies of confidential information in their possession.

Although employers may respond with legal action as Jawbone did, litigation remedies are often costly and inadequate, and not all information receives equal protection. Employers should instead take all reasonable steps to protect their trade secrets and confidential information, especially when employees are separating from the company. Practical Law has several resources to assist employers to prevent and, if needed, initiate a trade-secret litigation: