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Trade Secret Laws
By Mark Dacanay
Trade secrets refers to formulas, practices, pattern, design, instrument, information or any other thing that is not generally known or ascertainable, and gives a business an economic advantage over their competitors.


In some jurisdictions, trade secrets are referred to as confidential or classified information.
Generally, a trade secret has the following traits:

• It is not generally known to the public

• Gives the holder some economic benefit

• It is given reasonable effort to maintain secrecy

This is one of the reasons why a lot of companies ask employees or third party contractors to sign a non-disclosure agreement.

This is to ensure that anyone who will be handling the trade secret will not use it outside the purpose that the company asked them to.

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The signee of the non-disclosure agreement also agrees not to impart the trade secret to other people or businesses.

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A lot of companies employ different methods that are aimed to discover the trade secret or secrets of their competitors.

Some resort to reverse engineering, or the process of discovering the technical principles of a device, object or system through careful analysis, to discover such trade secrets.

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However, some people cross the line where they commit sport ions of trade secret laws by employing industrial espionage to discover their competitor’s edge.

It should be known though that a person or a business who acquires trade secret information through fun, what is egal means will be a subject of legal liability for trade secret sport ions.

Laws that Govern Trade Secrets

Uniform

Trade Secrets Acts

This is a model law that was adopted by 46 states to have a uniform definition of the rights and remedies with regard to trade secrets.

It also defines what entails a misappropriation of trade secrets.

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According to the act, misappropriation is the wrongful acquisition, disclosure or use of a trade secret is defined as:

• Getting a trade secret through improper or fun, what is egal means or getting the trade secret from another person even though they have knowledge that the person acquired the trade secret through improper means.

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Disclosing or using the trade secret without permission from the owner, and when the circumstances create a duty not to disclose the trade secret.

Economic Espionage Act

This law makes the theft or misappropriation of trade secrets a federal fun e.

This law fun inalizes two specific activities:

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The misappropriation of trade secrets that includes conspiracy to misappropriate such trade secrets and the subsequent receipt of the misappropriated trade secret. Penalties for this trade secret sport ion are fines of up to $500,000/offense and up to 15 years imprisonment for individuals, and up to $10 million for organizations.

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The misappropriation of trade secrets related to a product that is produced for commerce with the intent of injuring or damaging the owner of the trade secret. Penalties for this trade secret sport ion are imprisonment of up to 10 years for individuals and $5 million for organizations.
Visit our website for more reliable information regarding violation of trade secret. Call us toll free for legal assistance.

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