Queens New York Complaint - Trade Secrets - Misappropriation by Former Employee and Prospective Purchaser - Breach of fiduciary duty
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FAQ
The U.S. Economic Espionage Act of 1996, which became effective on January 1, 1997, makes theft or misappropriation of trade secrets a federal crime.
Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and.
California law defines the word misappropriation as improper acquisition or unauthorized disclosure of a trade secret without the consent of the owner of that secret. Examples of improper means for acquiring trade secrets include: Theft. Espionage. Bribery.
Trade secrets may include manufacturing, industrial and commercial secrets. The subject matter of trade secrets is usually defined in broad terms and may include manufacturing processes, distribution methods, advertising strategies, sales methods, consumer profiles, and lists of suppliers and clients.
Trade secret infringement is called misappropriation. It occurs when someone improperly acquires a trade secret or improperly discloses or uses a trade secret without consent or with having reason to know that knowledge of the trade secret was acquired through a mistake or accident.
A trade secret owner can enforce rights against someone who steals confidential information by asking a court to issue an order (an injunction) preventing further disclosure or use of the secrets.
Lost profits, unjust enrichment, and reasonable royalties are common measures of damages in trade secret misappropriation cases, but there is another rarely considered measure of damages: the diminution in value of a plaintiff's trade secret caused by the misappropriation.
Below we discuss the three elements of a trade secret, listed above. (1) The information is secret.(2) The information confers a competitive advantage.(3) The information is subject to reasonable efforts to keep it secret.
The disclosure of a trade secret is considered misappropriation under the UTSA if it was disclosed without the consent of the secret's owner. If a trade secret was acquired by improper means, the owner might pursue financial compensation for the losses caused by the use or disclosure of their trade secrets.
To qualify as a trade secret, the information in question must meet two essential criteria. First, the information must attain its value from the fact that it is not generally known. Second, the owner of that information must take reasonable efforts to maintain its secrecy.
