When can Trade Secrets be Disclosed?

Trade SecretsDo you know the inner-workings and trade secrets of your company, and suspect the company is operating in violation of the law? Are you reluctant to share company secrets for fear of facing federal, private, or civil action for trade-secret misappropriation? You are in a difficult spot: A good employment attorney may be able to help.

The Defend Trade Secrets Act

The DTSA protects trade secrets associated with products and services used in foreign or interstate commerce.  It affords U. S. businesses both protections and legal remedies for the misappropriation of proprietary information. This relatively new federal law provides a uniform way to view the definition of trade secrets, statutes of limitations, and intellectual property.

What is a Trade Secret?

The DTSA intentionally defined trade secrets rather broadly:

“all forms and types of financial, business, scientific, technical, economic, or engineering methods, techniques, processes, procedures, programs, or codes, whether tangible or intangible, and whether or how stored, compiled, or memorialized physically, electronically graphically, photographically, or in writing if

  1.     The owner thereof has taken reasonable measures to keep such information secret; and
  2.     The information derives independent economic value, actual or potential, from not being generally know to, and not being readily ascertainable through proper means by, another person who can obtain economic value from the disclosure or use of the information.”

What is “Misappropriation?”

The DTSA is quite specific as to what constitutes a misappropriation:

  • The attainment of information by improper means;
  • Obtaining information from someone who had the duty to protect it;
  • Knowingly acquiring a trade secret that was discovered by accident.

SnapChat Trade Secrets Lawsuit

One former employee is suing SnapChat, claiming that the company pressured him to reveal proprietary information about his former employer, Facebook. The employee, Anthony Pompliano, was terminated three weeks into his employment allegedly because he was incompetent. Pompliano claims he was lured to the company under false pretenses and was asked to share secrets about Facebook operations. Had he done so, he may have been subject to federal penalties.

Trade Secrets Sharing – Remedies

A number of remedies are available in the event of trade secret sharing:

  • Civil seizure;
  • Injunctions to prevent potential misappropriations;
  • Royalty payments, exemplary damages, and other damages.

[Read more…]

Disclaimer

The information on this website should not be considered to be legal advice, nor construed to be the formation of any manner of attorney client relationship. Prior to taking any form of legal action, please consult with an attorney experienced in the appropriate area of law germane to your situation. Case results and testimonials presented on www.californialaborandemploymentlaw.net or any of its related websites are germane to the facts present for each individual case and is not a promise of similar outcomes for any other cases. This website is not intended to solicit clients for matters outside of the State of California.