What is a Trade Secret?
A trade secret under the law of most states is information that is kept secret and gives its owner a competitive advantage because it is secret. The most famous example of a trade secret is the formula for Coca-Cola. Other examples include computer source code, other kinds of technology, customer lists, business plans, and human resources information. For more details on the concept of a "trade secret," see our article on what is a trade secret.
Trade Secret Law
Almost all of the states in the United States have enacted the Uniform Trade Secrets Act (UTSA). Uniform laws serve to harmonize the law among the different states.
No discussion of California intellectual property would be complete without mentioning trade secrets. California trade secret law is based on UTSA. California enacted its version of the UTSA, called the California Uniform Trade Secrets Act (CUTSA). CUTSA appears in California’s Civil Code.
Trade Secret Misappropriation
If someone steals your trade secrets, you can file a trade secret lawsuit for “misappropriation” of the trade secrets. The law includes various categories of misappropriation. For instance, if a person acquires a trade secret by “improper means,” such as physically stealing documents containing them, or hacking into a computer system, that acquisition may amount to “misappropriation.” Also, misappropriation includes disclosing a trade secret obtained from a person who used improper means to acquire it. If a person had a duty to maintain the secrecy of a trade secret, but yet discloses the trade secret without authorization, that person may also be liable for trade secret misappropriation.
Articles on Trade Secret Law in California
- What is a Trade Secret?
- California Uniform Trade Secrets Act
- The Obligation to Identify Trade Secrets in a Lawsuit
- Login and Password Information Can Be a Trade Secret
Speak to an Experienced Trade Secret Attorney
Please contact us to talk with us about trade secrets, whether you are a business trying to protect them, the victim of trade secret theft, or someone accused of having taken another’s trade secrets.
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