Also known as: trade secret · trade-secret · trade-secrets · trade secret law · misappropriation of trade secrets
Written by attorneys · grounded in primary & secondary sources — see below
Confidential commercial information that is not generally known and that confers a competitive advantage on its possessor. Protection requires reasonable steps to maintain secrecy and extends against misappropriation by improper means, with remedies including injunctions and damages for unauthorized use or disclosure.
True North Logistics sues Terra Financial over a disputed logistics algorithm. During discovery Terra moves for a protective order after True North seeks internal testing data. The court grants the motion and orders that the data be revealed only to designated counsel and experts under seal.
Titan Industries receives a subpoena from a competitor demanding production of its proprietary manufacturing process. Titan moves to quash. The court grants the motion because compliance would disclose confidential research and development information without adequate safeguards.
Select any source to read its text and confirm it supports the definition.
TechVista Solutions holds a valuable encryption formula. A federal agency requires disclosure of the formula as a condition of obtaining a license and then uses the information in its own procurement. TechVista sues alleging a taking of its property interest in the secret.
Talia Torres, a former officer of Titan Industries, seeks production of internal legal memos in a shareholder suit. The company resists, citing risk that the documents would reveal trade secrets. The court balances the need for the information against the potential harm from disclosure.
Tristan Thompson and Terra Financial agree to arbitrate a contract dispute involving proprietary software. The arbitration clause requires all proceedings to remain confidential. The arbitrator issues a protective order barring public disclosure of the software details to preserve their value.
Tori Taylor applies for a coastal development permit. The commission conditions approval on Taylor conveying an easement and also requires submission of proprietary site-survey data that constitutes a trade secret. Taylor challenges the data requirement as an uncompensated taking.
A plaintiff must show that the information is not generally known, confers a commercial advantage, and was subject to reasonable secrecy measures. The defendant must have acquired or used the information by improper means or in breach of a duty.
Courts may issue protective orders under Rule 26(c) that limit disclosure to specified persons, require sealed filings, or restrict the manner of revelation. Similar authority exists under Rule 45 to quash or modify subpoenas that would force disclosure.
Yes. When the government compels disclosure and then uses or disseminates the information in a way that destroys its economic value and interferes with reasonable investment-backed expectations, the Takings Clause may require compensation.
Courts may grant injunctions to prevent further use or disclosure and award damages measured by the plaintiff's loss or the defendant's unjust enrichment. Restitution of profits gained from the secret is also available.
Yes. Even without an express covenant, former employees may not disclose or use trade secrets learned during employment. This duty survives termination and supports injunctive relief when the information remains secret.
…(emphasis added), of obtaining registration of an insecticide would confer upon the Government a license to use and disclose the trade secrets contained in the application. Id. , at 1007-1008. See also Bowen v. Gilliard, ante , at 605. But the right to build on one's own property — even though its exercise can be subjected to…