California Civil Code Section 3426.1(b) defines misappropriation as unauthorized acquisition, use, or disclosure of known trade secrets.
- Acquisition: Types of improper acquisition include copying electronic files, removing documents, obtaining access to trade secrets by misrepresentation, or inducing a breach of a duty to maintain secrecy. The most important factor is the use of improper means to obtain the trade secret.
- Use: Examples of use or disclosure include contacting customers identified on a customer list or using someone's formula/recipe to replicate a product. It is important to note that a plaintiff need not establish that the defendant's product was identical to the product it sold or that all of the defendants' customers were once customers of the plaintiff. If the stolen formula accelerated the development process of the defendant or assisted the defendant in becoming a formidable competitor in a relatively short period of time, the plaintiff will likely prevail on its claims.
- Disclosure: Disclosure of a trade secret may be by intentional or accidental means. Since the California Uniform Trade Secret statute does not require a specific intent, an inadvertent disclosure can result in liability.
Thus, in order to successfully prevail on a trade secret claim, a plaintiff must not only prove that the property in dispute is a trade secret but it must also show that it was illegally acquired, used or disclosed.
Contact Our California Theft of Trade Secret Attorneys
Contact our Los Angeles law firm online or call 213-891-0777 to schedule a free initial consultation. We are available to meet with you between 8:30 a.m. and 6:00 p.m., Monday through Friday. Evening and weekend consultations are available by appointment.
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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
