What is a Trade Secret?
California's trade secret statute can be found in California Civil Code Section 3426.1 (d). It contains two prongs that must be satisfied before an item, method, process, technique or information is deemed a trade secret.
The first prong of the UTSA states that the information at issue must have independent economic value, actual or potential, from not being generally known to the public or to other persons who could obtain economic value from its disclosure or use. The term "independent economic value" means that the secrecy of the information provides a substantial business advantage. And the value must be more than trivial to the owner. In addition to a defense of general knowledge, if the information at issue is readily ascertainable by proper means -- even if not generally known-- it does not have any independent value.
Second, the alleged trade secret must have been maintained in a safe place so that it was not discoverable by the public or non-essential employees.
Handling Trade Secret Misappropriation Claims in Southern California
In addition to the foregoing, courts have found that: (1) a list identifying buyers of products that are inherently difficult to sell merits protection; (2) a list containing specialized information on each customer such as discounts offered and purchase history is more likely to be protected as trade secret; and (3) a list is more likely to be deemed trade secret if the customer’s purchase decisions are influenced primarily by its special needs or susceptibilities, as opposed to factors such as price, quality, reliable delivery and efficient service.
Contact Our Los Angeles, California Trade Secret Litigation Attorney
If you are involved in a dispute concerning misappropriation of trade secrets, it is vital to have the experienced business litigation attorneys of Fisher & Talwar on your side. Available remedies for trade secret misappropriation include: injunction, exemplary damages, attorney fees and costs, compensatory damages and payment of royalties. Our experienced business litigation lawyers are skilled in litigating misappropriation of trade secret claims. Contact our law firm online or call (213) 891-0777 to schedule a free initial consultation with an experienced California trade secret litigation lawyer.
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Fisher & Talwar
Professional Law Corporation
801 S. Grand Avenue, 11th Floor
Los Angeles, CA 90017-4613
Telephone: (213) 891-0777
Fax: (213) 891-0775
