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How Important are Trade Secrets to a Business?

In this case from the Hartford Business the answer is very important:

"A Superior Court jury in Northampton, Mass., rejected claims by STR Holdings that a former employee working for a rival misappropriated trade secrets in developing an encapsulant that shields solar modules from weather damage.

STR Holdings, which employs 1,700 Specialty Technology Resources Inc. employees at facilities in the United States and Spain, said the ruling ?will not have a material impact on our business.?

But in its registration statement filed with the Securities and Exchange Commission July 31, the company had warned that a negative ruling in the case could expose it to greater competition, saying: ?The outcome of this litigation is unknown and, if we are unsuccessful, competitors may be legally entitled to use certain proprietary technologies that have historically given us a competitive advantage in the marketplace.?"

Which means the company may have trouble going public. Which means its growth may be severely limited by not getting the influx of capital from an IPO.

Full post as published by Indiana Civil & Business Lawyer on October 17, 2008 (boomark / email).