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The unauthorized acquisition, use or disclosure of such secret information in a manner contrary to honest commercial practices by others is regarded as an unfair practice and a violation of the trade secret protection. What kind of information is protected by trade secrets?
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.
C. Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use. "Improper means" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.
For the first time, the DTSA gives American companies the opportunity to protect against and remedy misappropriation of important propriety information in federal court. Businesses should be aware of the salient provisions of the DTSA discussed below in order to adequately prepare to employ the protections of the DTSA.
A violation of trade secrets occurs when another obtains or exploits the secret information using unfair methods. Breaking into a competitor's plant or bribing employees would be obvious violations.
These laws define misappropriation as improper acquisitions, disclosures or uses. A trade secret is improperly acquired if it was obtained unlawfully. Prohibited methods of acquisition include bribery, theft, misrepresentation, espionage or willfully breaching a duty to maintain confidentiality.
Misappropriation of a trade secret can happen through a breach of nondisclosure agreements, publication, theft, fraud, or bribery. There are a number of defenses to trade secret misappropriation. An alleged wrongdoer might argue that it independently developed the 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.