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A trade secret is something used in a company's business that (a) is not known or readily accessible by competitors, (b) has commercial value or that provides a competitive advantage in the marketplace, and (c) the owner of the information protects from disclosure through reasonable efforts to maintain its secrecy.
According to the Trade Secrets Act, in order for an individual to protect their trade secrets, they must demonstrate efforts that are reasonable under the circumstances to maintain its secrecy. But, how do you protect information that requires other people's assistance (employees, subcontractors, etc.)?
Trade Secrets and Former Employees: Memorized Client Lists Can Still Be Protected as a Secret. The Supreme Court of Ohio has ruled that the use of a memorized client list by a former employee can constitute a trade secret violation.
A prima facie claim for misappropriation of trade secrets requires the plaintiff to demonstrate: (1) the plaintiff owned a trade secret; (2) the defendant acquired, disclosed, or used the plaintiff's trade secret through improper means; and (3) the defendant's actions damaged the plaintiff. (Cal.
What qualifies as a trade secret?commercially valuable because it is secret,be known only to a limited group of persons, and.be subject to reasonable steps taken by the rightful holder of the information to keep it secret, including the use of confidentiality agreements for business partners and employees.
Trade secrets may differ across jurisdictions but have three common traits: not being public, offering some economic benefit, and being actively protected.
11 strategies for protecting trade secretsDesignate a trade-secret compliance officer.Include protection in training programs.Limit disclosure of confidential information.Require confidentiality agreements.Limit the copying of confidential materials.Require immediate return of all confidential information.More items...?
For example, information that is not generally known by the public but is known by different manufacturers in the same industry likely does not qualify as a trade secret. Material that is ascertainable through public sources generally does not derive independent economic value justifying trade secret protection.
Even in this new environment, companies should still implement basic steps to protect trade secrets: (1) restrict access to specific information to those who need to know; (2) employ nondisclosure agreements (NDAs) with workers and business partners; (3) advise and train new hires that the company does not want and
Workplace Confidential: Preventing Former Employees from Using Your Trade Secrets. Most trade secret cases involve allegations that a former employee is using a company's confidential information at a new job or their own business.