Protecting Both Business Finances And Futures

Tesla sues former employees over nondisclosure agreements

On Behalf of | Aug 8, 2023 | Intellectual Property |

Nondisclosure agreements are used by many industries in California. They are designed to protect trade secrets and prevent employees from sharing intellectual property. But nondisclosure agreements can lead to issues when an employee moves on to work with another company that produces a very similar product to that of their former employer. Tesla is currently dealing with an issue related to NDAs signed by former employees that now work for the rival company Rivian. 

Tesla is going to court 

Tesla filed a lawsuit against some former employees who now work for Rivian, another company that makes electric vehicles. The lawsuit claims that the employees signed nondisclosure agreements but did not follow the terms of the agreement and may have shared trade secrets with Rivian. While the former employees attempted to get the lawsuit thrown out, that request was denied. 

Representatives of Tesla assert that the former employees accessed sensitive information by logging into company computers without authorization. Much of the information was related to technology developed by Tesla, including information on a new type of battery. Tesla claims that Rivian has a history of hiring former employees and that the actions claimed in the lawsuit violate California’s laws related to trade secrets.  

Legal help when fighting against intellectual property theft 

A business’s intellectual property must be protected, and NDAs are one of the most common methods used to protect that valuable information. When a former employee doesn’t follow the non-disclosure agreement terms, the company has the right to file a lawsuit against them. California companies with concerns about trade secret theft can work with an attorney to better understand their legal rights.  



FindLaw Network