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The plaintiff in a trade-secret case lawsuit must prove three facts: (1) it has some valuable business information that it has kept secret; (2) the information is not generally known; and (3) the defendant has used that secret. A defendant may attack each showing, but some attacks are better than others.
Trade secrets are protected by a combination of state and federal laws, which prescribe a combination of civil and criminal penalties for trade secret ?misappropriation??the improper acquisition, disclosure, or use of a trade secret.
Misappropriation occurs when a trade secret is improperly acquired or disclosed. If a person or entity discloses or publishes a trade secret while knowing it was improperly obtained, or by inducing someone to improperly obtain it, misappropriation exists.
Trade secret misappropriation occurs when a trade secret has been wrongfully taken or disclosed without consent. A trade secret is defined as information (1) that derives independent economic value from not being generally known, and (2) which has been the subject of reasonable efforts to be kept a secret.
Suppose you're found guilty of theft of trade secrets in violation of economic espionage under 18. U.S.C. § 1831, you could face severe penalties, including fines up to $5 million and imprisonment of up to 15 years.
Misappropriation of a trade secret includes industrial or commercial espionage, breach of contract and breach of confidence, electronic surveillance, trespass, bribery, and fraud. It does not include "reverse engineering", where a company purchases a product and finds out how it works by laboratory analysis.
(2) "Misappropriation" means: (a) 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; (b) Disclosure or use of a trade secret of another without express or implied consent by a person who used improper means to acquire knowledge of ...
Trade secret misappropriation occurs when a trade secret has been wrongfully taken or disclosed without consent. A trade secret is defined as information (1) that derives independent economic value from not being generally known, and (2) which has been the subject of reasonable efforts to be kept a secret.