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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 encompass both technical information, such as information concerning manufacturing processes, pharmaceutical test data, designs and drawings of computer programs, and commercial information, such as distribution methods, list of suppliers and clients, and advertising strategies.
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.
Basically, this is the Company saying, ?We think you stole some trade secrets but we have no idea what you might have taken and we have no evidence of any misappropriation.? The letter goes on to make some standard, boilerplate demands that the defendant immediately cease and desist using the trade secrets.
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.
Employees have a fiduciary responsibility to their employers not to pursue their own self-interests at the expense of the company, for instance, by stealing trade secrets or by advising a competitor. A ?breach of fiduciary duty? occurs when that trust has been broken.
This doctrine holds that a third party is liable when the third party acquires a trade secret from another and then discloses or uses the secret under circumstances where he knows or should have known that the trade secret was wrongfully acquired.