Trade Secrets protection can increase the value of your business and prevent others from competing unfairly. While California does have a strong public policy in favor of open competition, and against non-compete agreements, it also offers company’s strong protection for trade secrets.
Generally speaking the “trade secret” doctrine is a legal method to protect a company’s interests, investments and know-how.
What is The Definition of a Trade Secret?
The UTSA defines a trade secret as “information, including a formula, pattern, compilation, program, device, method, technique, or process, that: “(1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and (2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.” [Civil Code § 3426.1(d) (emphasis added); see Whyte v. Schlage Lock Co. (2002) 101 CA4th 1443, 1452, 125 CR2d 277, 285]. The information need not be in writing but may be in the employee’s memory. Morlife, Inc. v. Perry (1997) 56 CA4th 1514, 1522, 66 CR2d 731, 736. Cal. Prac. Guide Employment Litigation Ch. 14-C.
No, nondisclosure agreements are not essential to obtaining judicial relief. Courts will prevent ex-employees from using/disclosing trade secrets under the tort of misappropriation of trade secrets even without a confidentiality or nondisclosure agreement. See Klamath-Orleans Lumber, Inc. v. Miller(1978) 87 CA3d 458, 465–466, 151 CR 118, 121. Cal. Prac. Guide Employment Litigation Ch. 14-C.
What Are Some Examples?
California case law has held that the following items may be trade secrets: (1) customer lists; (2) plans and designs for the Company’s product and (3) a construction company’s “project binders” for proposed projects. Other items may be held to be protected trade secrets as well.
How can Adishian Law help?
We have represented clients in multiple matters, where trade secret allegations were at issue, both from the Company side and from the former employee side. We invite you to meet Chris Adishian.
Where can we learn more?
To see more examples, please visit our Case Studies and Testimonials.
How do we contact Adishian Law?
If you have been threatened with trade secret violations or believe that you have potential trade secret claims against another party, it is important to act quickly.
Please take advantage of our FREE online case submission or call us today to start a conversation.
CASE STUDIES
Represented entrepreneurs in beating back former employer's "cease and desist" letter and litigation threats based on unfounded allegations of trade secret theft.
TYPE
Trade Secrets
AREA OF LAW
Business
Represented client company in responding to new employee's former employer's unfounded allegations of trade secret theft intended to prevent hiring.
TYPE
Trade Secrets
AREA OF LAW
Business
Advised client company on sending "cease and desist" letter to former senior management employees who allegedly stole customer lists and other proprietary information to start competing business.
TYPE
Trade Secrets
AREA OF LAW
Business