What Can Be Classified as a Trade Secret?
Businesses often keep certain types of information classified in order to keep themselves competitive with other companies. According to definition 1839 as found in Title 18 of the U.S. Code, a trade secret is defined as any type of information that meets the following criteria:
- “The owner thereof has taken reasonable measures to keep such information secret.”
- “The information derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, the public.”
Companies can keep information confidential through non-disclosure contracts with employees, which legally prevent them from disclosing protected information. However, once information has been discovered by a third party, there are no legal protections to prevent the third party from using the information.
If you are involved in a trade secrets dispute, a qualified Orange County business attorney from Daily Aljian can help. To discuss your situation, contact our offices at 949-861-2524.