Key Takeaways
- Indiana treats unauthorized access to trade secrets or protected data as a Level 6 felony under state law.
- A Level 6 felony conviction can bring six months to two and one-half years in prison.
- Fines for a Level 6 felony conviction may reach ten thousand dollars in addition to prison time.
- Trade secrets, copyrighted works, and trademarks each face distinct forms of theft under Indiana law.
- Victims can pursue both criminal charges and civil remedies for stolen intellectual property.
A business built on original ideas, proprietary code, or a recognizable brand name carries real value, and that value disappears quickly once someone else takes it without permission. Intellectual property theft in Indiana covers a wide range of conduct, from an employee copying confidential files before leaving a company to a competitor lifting a logo or a trade secret formula. Our Indianapolis criminal defense attorney at Banks & Brower represents businesses and individuals across Indiana who have discovered their proprietary information, creative work, or branding used without authorization. Indiana law treats certain forms of this conduct as a felony offense, and understanding how the statutes apply can shape what happens next, both in the days immediately following discovery and throughout any case that follows.
Contact your Criminal Defense Lawyers in Indianapolis
call us: 317-870-0019What Qualifies as Intellectual Property Theft in Indiana?
Indiana law addresses intellectual property theft through several overlapping categories, each covering a different type of protected asset. These offenses sit within the broader family of white collar crimes that Indiana prosecutes at the state and county level. Trade secret misappropriation involves taking confidential formulas, source code, customer lists, pricing models, or internal business strategies that give a company a competitive edge over others in its industry.Ā Copyright infringement covers the unauthorized reproduction, distribution, or public use of written, creative, or digital works, including marketing materials, software, and original design content. Trademark infringement occurs when a business copies another company’s branding, logo, slogan, or domain name in a way that could confuse consumers about the true source of a product or service.
Indiana also criminalizes conduct tied to computer systems, which has become one of the most common ways intellectual property theft actually occurs. Under Indiana Code 35-43-1-7, a person who knowingly modifies, destroys, or discloses trade secret data or confidential information stored on a computer, computer system, or computer network without authorization commits an offense against intellectual property. This statute reaches situations where a departing employee logs into a company network to copy files, delete internal records, or forward protected information to a new employer or competitor.
What Are the Penalties for Intellectual Property Theft?
Indiana classifies an offense against intellectual property as a Level 6 felony, placing it among the more serious property crimes prosecuted in the state. Under Indiana Code 35-50-2-7, a Level 6 felony conviction carries a prison term ranging from six months to two and one-half years, with an advisory sentence of one year serving as the starting point for most cases. Courts may also impose a fine of up to ten thousand dollars in addition to any prison term, and a judge weighs factors such as the value of the stolen material and any prior criminal history when determining where within that range a sentence falls.
Beyond state criminal exposure, federal law separately addresses trade secret theft and counterfeiting, and a case involving interstate conduct or significant financial harm may draw the attention of federal prosecutors as well. A business victimized by intellectual property theft in Indiana also retains the option to pursue civil remedies under the Indiana Uniform Trade Secrets Act, including monetary damages and court orders preventing further use of the stolen material. Criminal charges and a civil claim can proceed on separate tracks, and the outcome of one does not determine the outcome of the other.
How Can You Prove Intellectual Property Theft?
Building a case for intellectual property theft depends heavily on documentation gathered early, before evidence can be altered or deleted. Employment contracts, non-disclosure agreements, and confidentiality policies establish what information a person was authorized to access and what obligations governed how they could use it. Access logs, email records, and file transfer histories can show precisely when data was copied, downloaded, or transmitted outside the scope of normal business activity, which often becomes the clearest indicator that something improper occurred.
Digital forensic analysis frequently plays a central role in these cases. A forensic review of company devices or servers can reveal when files were accessed, whether an external drive was connected shortly before an employee’s departure, or whether data moved to a personal cloud account. Witness testimony from coworkers, supervisors, or IT staff can corroborate the timeline the digital evidence establishes. Indiana courts weigh this combination of contractual obligation, digital record, and firsthand testimony when determining whether theft occurred under the statute, so a thorough record from the outset carries significant weight later.
What Should You Do if Your Intellectual Property Has Been Stolen?
Acting quickly preserves both evidence and legal options. Secure any devices, accounts, or systems the suspected offender had access to, and avoid altering files that may later serve as evidence in a criminal or civil proceeding. Document the timeline of events, including when the information went missing, who had access during that window, and any communications that might explain how it happened.
A cease and desist letter can halt continued use of stolen material while a broader legal strategy takes shape behind the scenes. Depending on the circumstances, filing a police report may open the door to criminal charges, while a parallel civil claim can pursue financial recovery and injunctive relief against the person or business responsible. Consulting an attorney early helps determine which combination of criminal referral, civil litigation, or negotiated resolution best fits the specific facts of the situation, since the right approach often depends on details that are not obvious at first glance.
Contact Banks & Brower for Help With an Intellectual Property Theft Case
An intellectual property theft case moves quickly once evidence starts to disappear or a suspect has time to cover their tracks, and every day of delay can weaken the record needed to prove what happened. Banks & Brower works with Indiana businesses and individuals to evaluate available evidence, pursue criminal referrals when warranted, and build civil claims to recover losses tied to stolen work. Call us at (317) 870-0019 today to discuss what happened and the options available to protect what you built.
