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Under California law, ?misappropriation? refers to the acquisition of a trade secret through improper means ? theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage.
Under California law, employers can enjoin threatened trade secret misappropriation before actual misappropriation has occurred under certain circumstances - so departing employees must be prepared to defend against claims. CA Civ Code § 3426.2 (2021); 18 USC § 1836(b)(3)(A)(i)(I).
Breaches of non-disclosure agreements, industrial espionage, theft, fraud, and bribery are all improper means of acquiring a trade secret. For example, if you hack into a company's computer and copy the files, this act of acquiring the secrets improperly is misappropriation.
Trade Secrets Law in California Civil Code sections 3426.1-3426.11. If a company takes reasonable measures to protect its information, and if the information is valuable because it is kept secret, California courts will recognize that common, every-day pieces of data can be afforded protection as a trade secret.
A violation of Section 1832 is a serious criminal offense carrying stiff penalties. Anyone who steals trade secrets, or receives stolen trade secrets knowing that they were unlawfully obtained, can be punished by a maximum of 10 years in federal prison plus fines. The fines applicable under this section can be severe.
Statute of Limitations for Trade Secrets In California, a party has three years to bring a theft of a trade secret claim. The three year period starts when the misappropriation is discovered or if the exercise of reasonable diligence should have been discovered.
Under California law, ?misappropriation? refers to the acquisition of a trade secret through improper means ? theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage.
The acts that constitute misappropriation are also described specifically, giving welcome guidance to litigants. Under the DTSA, misappropriation is defined as follows: acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or.