Trade Secrets

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When certain information, such as a manufacturing process or a composition formula, provides an economic advantage to a business entity and disclosure of such information would be detrimental to the success of the business, the information may be protected as a trade secret. Trade secret protection is available in the United States and many countries around the world.

The definition of a trade secret varies geographically, but generally, a trade secret means all forms and types of financial, business, scientific, technical, economic, or engineering information, including patterns, plans, compilations, program devices, formulas, designs, prototypes, methods, techniques, processes, procedures, programs, or codes, whether tangible or intangible, and whether or how stored, compiled, or memorialized physically, electronically, graphically, photographically, or in writing if (A) the owner thereof has taken reasonable measures to keep such information secret; and (B) 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.

In the United States, most states have adopted the Uniform Trade Secrets Act (UTSA). The UTSA provides for injunctive relief and damages against those who misappropriate a trade secret. If willful and malicious misappropriation exists, exemplary damages may also be available. Criminally, the Economic Espionage Act of 1996 makes theft or misappropriation of a trade secret a federal crime if commercial information is misappropriated with the knowledge or intent that the theft will benefit a foreign power. (18 U.S.C. § 1831 et seq.)

In the European Union, a trade secret is also known as confidential information, know-how, business secret, industrial secret, or manufacturing secret. Protection is afforded to such information if the information has commercial value and the owner of such information takes reasonable steps to keep it secret. Generally, there must be a link between secrecy and economic advantage. In Germany, trade secret law is embodied in the law of unfair competition. Misappropriation of a trade secret can result in criminal liability and, in the German Civil Code, can give rise to a claim for damages.

Urban Thier Federer & Chinnery, P.A. can assist your business with establishing, maintaining, and protecting your trade secret.

Our law firm assists clients in the following areas of trade secret law:

  • Non-disclosure/Confidentiality agreements
  • Employment agreements
  • Development of security policies and practices
  • Trade secret enforcement
  • Trade secret misappropriation defense

More detailed descriptions of our attorneys and practice areas can be found on this website and are available upon request.