Trade Secrets

Question 1

What is a trade secret?

Answer 1

Any confidential business information that gives a company a competitive advantage.

Question 2

What are examples of trade secrets?

Answer 2

Formulas (e.g., Coca-Cola recipe), methods, processes, software/code, patterns, designs, techniques, strategies, or data.

Question 3

What are the requirements for something to be protected as a trade secret?

Answer 3

1. Provides a competitive edge, 2. Kept reasonably secret, 3. Doesn’t need to be new or novel, 4. Secrecy is judged by industry norms.

Question 4

Which state law protects trade secrets?

Answer 4

Uniform Trade Secrets Act (USTA), which provides civil and criminal penalties.

Question 5

Which federal laws protect trade secrets?

Answer 5

Economic Espionage Act (EEA) and Defend Trade Secrets Act (DTSA).

Question 6

What does the Economic Espionage Act (EEA) do?

Answer 6

Makes trade secret theft a federal crime.

Question 7

What does the Defend Trade Secrets Act (DTSA) do?

Answer 7

Allows trade secret owners to sue in federal court; adds civil remedies to the EEA.

Question 8

What must a trade secret owner prove in an infringement case?

Answer 8

1. The accused knew or should’ve known it was a trade secret, 2. Obtained it through improper means, 3. Used or shared it without permission.

Question 9

What are examples of improper means in trade secret theft?

Answer 9

Hacking, theft, or violating an NDA.