Intellectual Property & Trade Secret Lawyers in Houston

Helping Clients in Texas Protect & Defend Trade Secrets

Trade secrets, trademarks and copyrights have considerable value and are vital to a business' long-term success.

• Are you proactively protecting your intellectual property and trade secrets?
• When your intellectual property is infringed, do you know your options for remedies?

Our legal team at Hendershot Cowart P.C. has been protecting and defending intellectual property and trade secrets since 1987. Managing Shareholder Trey Hendershot personally has more than 35 years of experience representing clients involved in intellectual property disputes.

On this page:

• Trade Secrets vs. Intellectual Property
• How to Protect Intellectual Property
• Defending Intellectual Property & IP Disputes
• How to Protect Trade Secrets in Texas
• How to Deal with Theft of Trade Secrets
• Industries Most at Risk for IP Theft
• Don't Let IP Theft Destroy What You've Built
• Frequently Asked Questions

Our Houston business law firm has the knowledge of both Texas and federal law to confidently assert or defend your rights in any type of intellectual property dispute. Call (713) 783-3110 or email us to set up a confidential consultation about your case.

Trade Secrets vs. Intellectual Property

Intellectual property is a broad term that encompasses all intangible assets created through human intellect, including software, brand names, patented inventions, and trade secrets (such as confidential client lists). Most intellectual property (excluding trade secrets) is publicly disclosed but legally protected from unfair competitive use. 

A trade secret is a subset of intellectual property whose inherent value lies in secrecy. Examples include client lists, financial data, manufacturing processes, and pricing strategies. 

For example, Coca-Cola’s brand belongs in the larger category of intellectual property, while its recipe is a carefully guarded trade secret.

How to Protect Intellectual Property in Texas

Our Houston IP law firm uses a variety of tools to mitigate the risks to your intellectual property, including:

Copyright Registration 

Copyright protection is governed by federal law and covers original works of authorship – such as books, paintings, computer programs, and blog posts – as soon as the work is fixed in a tangible form.

If copyright protection automatically applies when a work is created, why register it with the U.S. Copyright Office? A failure to register your copyright will affect your ability to fully enforce your rights.

Once a copyright is registered, you have the option to file a lawsuit seeking statutory damages, attorney’s fees, and costs for copyright infringement.

To register your copyright, you will need:

• Copyright registration form (the specific form necessary will depend on the type of work being registered);
• Filing fee; and
• A copy of the work being registered with the Copyright Office.

DMCA Takedown Notices

Even if you failed to register your work, there are still enforcement options available, the most potent being the Digital Millennium Copyright Act (“DMCA”)

Any entity or individual with a valid copyright claim can submit takedown requests to online service providers.

A DMCA takedown notice must include:

• A statement that you are (or authorized to act on behalf of) the copyright owner;
• Specific identification of the infringing material;
• Identification of the location of the infringing material on the website;
• Contact information;
• A statement that the use of the material is unauthorized; and
• A sworn statement that the information submitted is true and correct.

Once submitted, online platforms must take prompt action to either remove or disable access to infringing materials.

While the DMCA does not provide a damage model, it’s an effective tool to stop unauthorized reproduction of your work.

Trademarks 

Trademarks are protected by both federal and state laws, with the possibility of registering with the U.S. Patent and Trademark Office (USPTO) for nationwide protection or the Texas Secretary of State for statewide protection.

According to the Texas Secretary of State, a trademark is:

• Something “used in connection with tangible goods or products”; and
• Defined by statute as “a word, name, symbol, or device, or any combination of those terms, used by a person to identify and distinguish the person’s goods from the goods manufactured or sold by another.”

Under Texas law, you do not have to register your mark as you do with copyrights to protect your rights, as Texas recognizes certain common law rights in this regard.

However, Texas does have a process to register your mark with the Secretary of State. Registration enhances your ability to enforce trademark rights and prevents others from using your brand name in Texas for the same class of goods or services.

The federal system of registering trademarks is like the Texas system in that you can register any mark which distinguishes your products. Federal trademarks are registered with the USPTO.

Federal trademark claims protect owners of a federally registered mark against the use of similar marks nationwide if such use is likely to result in consumer confusion or if the dilution of a famous mark is likely to occur.

Licensing or Technology Development Agreements 

Once you have registered your copyright or trademark, you have the option to license this work to others.

Under a licensing agreement, you can allow a third-party to use your trademark or copyright in exchange for a fee. The agreement further clarifies that while a third party can use the work, they are not the owner of the mark.

Alternatively – especially in the world of content creation – you can craft a licensing agreement whereby you grant ownership of your work to a third party but retain a license to use your work in connection with your own business.

Work-for-Hire Agreements 

A work-for-hire agreement is a contract to establish that your business – not the employee or contractor – owns all intellectual property created during the engagement. These agreements ensure the business has full ownership, usage, and control over intellectual property and provide perpetual protection under federal copyright law when properly structured.

Defending Intellectual Property & IP Disputes

If someone infringes on your copyright or trademark, you have several options for legal action, depending on whether your IP is registered or not.

• DMCA Takedown Notices
• Federal suit for copyright infringement
• Federal suit for trademark infringement
• Texas State court action for common-law trademark infringement

Intellectual property that is registered as a copyright or trademark generally provides greater enforcement capabilities, including statutory damages in addition to actual damages.

Accused of Trademark or Copyright Infringement? 

Infringement claims often begin with a demand letter accusing you or your business of infringement, cataloguing the accuser’s legal claims to the trademark or copyright, and threatening legal action unless you “cease and desist” immediately.

Do not be alarmed. Demand letters are not court orders; they are merely the opposing party's legal opinion. This does not mean you should ignore the demand letter. Instead, a timely, well-argued legal response is recommended. 

Our Houston IP attorneys can defend against IP infringement claims by:

• Challenging the Claim's Legal Foundation: We analyze whether the accuser's trademark or copyright is valid and eligible for protection. Many claims fail because the accuser cannot prove they are the senior user of the mark or that their copyright registration is proper.
• Demonstrating No Likelihood of Confusion: For trademark claims, we examine the seven factors Texas courts use to evaluate confusion: type of mark, similarity of design, similarity of products/services, retail outlets, advertising channels, defendant's intent, and evidence of actual confusion. As shown in our response letters, significant differences in logo design, colors, fonts, and business services often defeat infringement claims.
• Proving Distinct Products or Services: Even if trademarks share the word "Platinum," companies offering different services in different markets do not necessarily infringe. We can document these distinctions clearly in our defensive strategy.
• Establishing Good Faith Use: We can demonstrate that your use of the mark was unknowing, that you purchased rights properly, or that your use complies with licensing terms.
• Negotiating Cost-Effective Resolutions: Sometimes removing disputed materials from your website and agreeing not to use certain marks in the future resolves disputes without expensive litigation – protecting your business while avoiding court costs.
• Preserving All Legal Remedies: We can firmly reject baseless demands while reserving your rights to counterclaim for frivolous allegations and recover attorney fees if the accuser pursues meritless litigation.

Received a trademark or copyright infringement demand letter? Call (713) 783-3110 or contact us online today for immediate evaluation of your infringement claim. 

Our experienced IP litigation lawyers will review the demand letter, assess the merits of the claim, and craft a strategic response that protects your business interests while preserving all available legal remedies.

How to Protect Trade Secrets in Texas

Non-Disclosure Agreements (NDAs) 

NDAs prevent disclosure of confidential information and are highly enforceable in Texas, providing immediate and ongoing protection. NDAs are often used in contractor or vendor relationships, joint venture agreements, or business negotiations. 

Non-Compete Agreements 

Non-compete agreements restrict competitive activity and are enforceable in Texas if they are reasonable in scope, duration, and geographic scope. 

To be enforceable, a non-compete agreement must:

• Be ancillary to an otherwise enforceable agreement, such as an employment agreement;
• Be reasonable in the scope of activity;
• Be reasonable in geographic area; and
• Be reasonable in time limits (the typical duration is one to two years).

Non-compete agreements for physicians in Texas have their own strict requirements, including buyout caps, geographic limitations, and access to patient records upon separating from the practice.

If a non-compete agreement is overly broad, a Texas judge has the discretion to either:

1. Redline your non-compete to make it enforceable; or
2. Choose not to enforce your non-compete agreement.

Non-competes are not viewed by the courts as a punitive agreement, but rather as what is necessary to protect your legitimate business interests. As such, when enforcing a non-compete, you must articulate what the former employee knows that must be protected from disclosure.

Non-Solicitation Agreements 

Non-solicitation agreements, commonly used alongside non-compete agreements, contractually prevent former employees from reaching out to customers, employees, or vendors to lure them away from the business. Texas courts enforce these agreements when reasonably tailored to protect legitimate business interests, with typical durations of one to two years.

Unlike non-competes, non-solicitation agreements don't require specific geographic limitations.

Texas Uniform Trade Secrets Act

Even without a non-solicitation or non-compete agreement in place, your trade secrets are still protected by Texas law.

Under the Texas Uniform Trade Secrets Act (TUTSA), a trade secret is defined as “information, including a formula, pattern, compilation, program, device, method, technique, process, financial data, or list of actual or potential customers or suppliers, that:

• Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and
• is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

TUTSA allows trade secret owners to bring claims in Texas courts to stop the use of the trade secret and recover damages, including attorneys’ fees.

How to Deal with Theft of Trade Secrets

If an associate, employee, or former employee improperly uses or discloses your trade secrets, you can file a lawsuit for misappropriation of trade secrets under TUTSA. Misappropriation occurs when a trade secret is improperly acquired or when the trade secret is disclosed without proper consent.

In assessing whether trade secret misappropriation occurred, courts will look at:

• The scope of the trade secret known outside of the business;
• The degree of knowledge possessed by others involved in the business, including employees;
• The measures taken by the business to keep the information a secret;
• The value of the information to the success of the business;
• The value of the information to competitors of the business;
• Time, money, and effort put into developing the trade secret; and
• How easy or difficult it may be for competitors to acquire or duplicate the protected information.

Texas law also imposes a fiduciary duty on employees not to take and use trade secrets for the employee’s own benefit or to the detriment of the employer. As an employer, you can also file a lawsuit claiming breach of that fiduciary duty.

Our goals when helping you deal with the theft or misappropriation of intellectual property:

• Stop competitors, former employees, business associates, partners, shareholders, etc. from stealing or misappropriating your trade secrets;
• Obtain monetary damages for actual loss, which is tied directly to the misappropriation, and for unjust enrichment, which is tied indirectly to your original investment in research and development;
• Obtain injunctive relief when appropriate; and/or
• Obtain reasonable royalty streams based on use if your product/service could have been licensed.

Houston Industries Most at Risk for IP Theft

Based on our 35-plus years of experience, we have found the following industries to be at greater risk for trade secret theft or IP infringement in the Houston area:

• Energy & Oil & Gas: Houston's energy sector faces constant IP threats, including disclosure of proprietary drilling techniques, reservoir data, geological analysis, and pricing strategies – especially as fallout after an M&A deal fails. 
• Healthcare: Medical practices, hospitals, and med spas are often involved in trademark disputes when brand names or logos appear to cause patient confusion in the communities they serve.
• Technology & Software: Software developers working as contractors frequently field claims of NDA violations when developing apps or software solutions for themselves or other clients.
• Professional Services: Accounting firms, law firms, consulting practices, and financial advisors depend heavily on client relationships. Trade secret theft typically involves stolen client lists and controversy over whether the departing professional solicited clients away.
• Franchise & Restaurant Operations: Franchise and restaurant brands are significant IP assets vulnerable to infringers eager to borrow the brand’s goodwill.
• Manufacturing & Industrial: Manufacturers face theft of production processes, blueprints or plans, and product formulations. These trade secrets often represent years of research and development.

If your Houston business operates in these industries, proactive IP protection through employment agreements, trademark and copyright registration, and taking measures to protect confidential trade secrets is essential.

Don't Let IP Theft Destroy What You've Built

Your intellectual property represents years of investment, innovation, and hard work. Whether a former employee has stolen your customer list, a competitor is using a confusingly similar trademark, or you've received a baseless infringement demand letter, immediate action is critical.

Hendershot Cowart P.C. has been defending Texas businesses against IP theft and infringement claims since 1987. Our IP attorneys don't just react to problems – we build comprehensive protection strategies that prevent costly disputes before they arise.

Call (713) 783-3110 today for a confidential consultation. Tell us what happened, and we'll tell you exactly what we can do to protect your business.

Frequently Asked Questions About IP Protection in Houston

What qualifies as a trade secret under Texas law?

Under the Texas Uniform Trade Secrets Act (TUTSA), information qualifies as a trade secret if it: (1) has actual or potential economic value from being secret, (2) has value to others who cannot easily obtain it, and (3) is subject to reasonable secrecy measures by the owner.

Can you sue for trade secret theft in Texas?

Yes. Under TUTSA, you can sue for injunctive relief, actual damages, unjust enrichment, and reasonable royalties. You may also pursue punitive damages if misappropriation was willful and malicious.

How do I enforce a non-compete agreement in Houston?

You typically enforce non-compete agreements by filing a lawsuit in state court and requesting a temporary restraining order (TRO) to stop the former employee from acting in violation of the non-compete agreement. Learn more about enforcing Texas non-compete agreements.

What happens if I don't register my trademark?

Without Texas or federal trademark registration, you only have common law rights in the geographic areas where you use the mark. Texas common law rights grant the "senior user" (i.e., the first person to use the trademark in the area) priority and protection against consumer confusion. Again, these rights are limited to the city, county, or specific area where the business actively operates, and do not provide nationwide protection. Common law rights are also more difficult to enforce.

Can I prevent a former employee from working for my competitor?

Yes, you can prevent a former employee from working for a competitor, but only for a limited time and within a reasonable geographic area if you have an enforceable non-compete agreement. Learn more about drafting an enforceable non-compete agreement for Texas. 

Do I need a lawyer to file a trademark application?

While not required, working with a Houston trademark lawyer significantly increases approval chances. Attorneys conduct comprehensive searches, properly classify goods/services, draft descriptions that maximize protection, and handle required paperwork and filings with the Texas Secretary of State or the USPTO. DIY applications frequently face rejections that could have been avoided.