Pennsylvania Complaint - Trade Secrets - Misappropriation by Former Employee and Prospective Purchaser - Breach of fiduciary duty
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In the discharge of this duty, an executor is regarded as a fiduciary and is held to the highest degree of good faith. He or she will be required to exercise the same degree of judgment, skill, care, and diligence that a reasonable or prudent person would ordinarily exercise in the management of his or her own affairs.
Use of a trade secret belonging to another does not always constitute misappropriation. There are two basic situations in which obtaining the use of a trade secret is illegal; where it is acquired through improper means, or where it involves a breach of confidence.
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.
See 42 Pa. C.S.A. § 5525. To establish a breach of fiduciary duty, a plaintiff must prove: 1) that a fiduciary relationship exists; 2) that the fiduciary has committed misconduct; and 3) that the misconduct caused them to suffer damages.
Before an owner of a trade secret is entitled to a legal or equitable remedy for another's use of that trade secret, the owner must prove that the trade secret was ?misappropriated.? Under the Uniform Trade Secrets Act, a trade secret is ?misappropriated? if it is acquired ?by a person who knows or has reason to know ...
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.
The Uniform Trade Secrets Act, codified in Pennsylvania at 12 P.S. § 5302, defines a ?trade secret? as ?information, including a formula, drawing, pattern, compilation including a customer list, program, device, method, technique or process that: (1) derives independent economic value, actual or potential, from not ...
Under Pennsylvania law, tort actions, including breach of fiduciary duty and fraud, are subject to a two-year statute of limitations.