Elements of a Trade Secret Quiz

PDF page 181: 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. Absent these two elements, information does not qualify as a trade secret and is not entitled to trade secret protections that

PDF page 181: 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. Absent these two elements, information does not qualify as a trade secret and is not entitled to trade secret protections that

PDF page 181: Trade secrets are not limited to particular subject matters, although the knowledge or information to be protected need not take any particular form. A trade secret can be information or knowledge in the form of a formula, pattern, compilation, program, device, method, technique, or process. Although the UTSA defines what may be a trade secret, various courts interpreting the UTSA have come to different conclusions on what type of material should be considered a trade secret. For example, whereas courts have found that an insurer’s database is a trade secret under Wisconsin law, a similar database was found not to be a trade secret

PDF page 181: Trade secrets are not limited to particular subject matters, although the knowledge or information to be protected need not take any particular form. A trade secret can be information or knowledge in the form of a formula, pattern, compilation, program, device, method, technique, or process. Although the UTSA defines what may be a trade secret, various courts interpreting the UTSA have come to different conclusions on what type of material should be considered a trade secret. For example, whereas courts have found that an insurer’s database is a trade secret under Wisconsin law, a similar database was found not to be a trade secret

PDF page 181: For information or knowledge in any of the above forms to be considered a trade secret, it must derive independent economic value because it is not generally known to, nor readily ascertainable by, other persons who can profit from its disclosure or use. Some examples of information courts have found to be trade secrets include computer software, sales information, customer information, and manufacturing formulas. However, merely because information is not known to the public does not necessarily make the information a trade secret. For example, information that is not generally known by the public but is known by different

PDF page 181: For information or knowledge in any of the above forms to be considered a trade secret, it must derive independent economic value because it is not generally known to, nor readily ascertainable by, other persons who can profit from its disclosure or use. Some examples of information courts have found to be trade secrets include computer software, sales information, customer information, and manufacturing formulas. However, merely because information is not known to the public does not necessarily make the information a trade secret. For example, information that is not generally known by the public but is known by different

PDF page 181: manufacturers in the same industry likely does not qualify as a trade secret.

PDF page 181: For information or knowledge in any of the above forms to be considered a trade secret, it must derive independent economic value because it is not generally known to, nor readily ascertainable by, other persons who can profit from its disclosure or use. Some examples of information courts have found to be trade secrets include computer software, sales information, customer information, and manufacturing formulas. However, merely because information is not known to the public does not necessarily make the information a trade secret. For example, information that is not generally known by the public but is known by different

PDF page 181: For information or knowledge in any of the above forms to be considered a trade secret, it must derive independent economic value because it is not generally known to, nor readily ascertainable by, other persons who can profit from its disclosure or use. Some examples of information courts have found to be trade secrets include computer software, sales information, customer information, and manufacturing formulas. However, merely because information is not known to the public does not necessarily make the information a trade secret. For example, information that is not generally known by the public but is known by different

PDF page 182: examining or testing the publicly available product, then it is more likely to be a trade secret. Conversely, if the information may be discovered through public observation of the product or the company’s displays, it is

PDF page 182: unlikely to be a trade secret. For example, customer lists are not considered trade secrets when the identity of the customers could potentially be discovered through public sources. However, identical information if not

PDF page 182: In addition to information, certain ideas may constitute trade secrets. Although ideas were not protected as trade secrets under common law, the UTSA provides protection for certain novel and concrete ideas. For example, remedies for misappropriation of an idea may be permitted based on the existence of a confidential relationship. The elements that must be proven under this common theory are: (1) a novel or original idea; (2) reduced to concrete form; (3) disclosed to the defendant in a confidential relationship, i.e., one in which it would be implied that use would not be made without compensation; and, (4) used by the defendant.

PDF page 182: In addition to information, certain ideas may constitute trade secrets. Although ideas were not protected as trade secrets under common law, the UTSA provides protection for certain novel and concrete ideas. For example, remedies for misappropriation of an idea may be permitted based on the existence of a confidential relationship. The elements that must be proven under this common theory are: (1) a novel or original idea; (2) reduced to concrete form; (3) disclosed to the defendant in a confidential relationship, i.e., one in which it would be implied that use would not be made without compensation; and, (4) used by the defendant.

PDF page 182: In addition to information, certain ideas may constitute trade secrets. Although ideas were not protected as trade secrets under common law, the UTSA provides protection for certain novel and concrete ideas. For example, remedies for misappropriation of an idea may be permitted based on the existence of a confidential relationship. The elements that must be proven under this common theory are: (1) a novel or original idea; (2) reduced to concrete form; (3) disclosed to the defendant in a confidential relationship, i.e., one in which it would be implied that use would not be made without compensation; and, (4) used by the defendant.