Trade Secret
There is no single definition of a trade secret. Instead, each state has its
own take on this area of the law. One generally accepted definition comes from
the Uniform Trade Secret Act: "Trade secret means information, including a
formula, pattern, compilation, program, device, method, technique or process,
that: (i) derives independent economic value, actual or potential, from not
being generally known to, and not being readily ascertainable by proper means by
other persons who can obtain economic value from its disclosure, and (ii) is the
subject of efforts that are reasonable under the circumstance to maintain its
secrecy." If you have trade secrets to protect, you should have a plan and
procedures for maintaining your secret. Agreements that typically address trade
secrets include clauses relating to (1) non-disclosure of trade secrets, (2)
non-disclosure of proprietary information that doesn't have trade secret status,
and (3) non-competition.
The Economic Espionage Act of 1996 (EEA) (18 U.S.C.A. §§ 1831-39) makes the
theft of trade secrets by any means, including downloading or uploading computer
files, a federal crime.
Trade secrets play an important role in any outsourcing transaction. Both the
enterprise and the services provider share an interest in maintaining
confidentiality and otherwise protecting the other's interests.
Additional Resources
Intellectual Property
Copyright
Moral Rights
Patent
Trademark
Knowledge Management
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