LawMemo       First in Employment Law 

LawMemo's reason for being: We publish Employment Law Memo - summaries of latest court decisions, one-click links to full text, three emails per week.   Try it. 

Home | Free Trial | Products & Prices | Feeds | Caselaw Database | Sample   
EEOC
| NLRB | Nat'l Arbitration Ctr | Supreme Court | Articles | Lawyers
Employment Law BlogArbitration Blog | Employment Law 101    
Employment Law Memo | NLRB Law Memo | Arbitration Law Memo

Quick Jump: 

Employment Law 101  

Employment Law 101 is a series designed to give you ideas and help you spot legal issues. It is not a substitute for a good employment lawyer or thorough research. For the most current developments in employment law court cases, try Employment Law Memo - First in Employment Law.

All Archives

« Non-competition agreements #11 | Main | Whistleblowing #13 »

Trade secrets & confidential information #12
by Ross Runkel at LawMemo

Defining a "trade secret" is difficult, and courts don't always agree on what it means.

The general idea is that we are dealing with something unique and secret that gives the employer a business advantage over competitors who don't know about it.

Examples: Secret chemical formula, manufacturing process, pattern for a machine, tool, unique plan, information, customer list.

Excluded from the list is the general knowledge that an employee learns from the employer, even if the employer spent a lot of money to train the employee.

First, it has to be a secret. If the employer allows knowledge to get out into the public domain, then it's no longer a trade secret. If an outsider gets knowledge in an innocent way, he or she can use the information. (Be careful - If there is a patent or copyright, the employer will still have protection.) In order to be a secret, the employer must take reasonable steps to keep it a secret.

Second, It has to be something unique, original, or different from the ordinary information that is generally available to others in the same business.

Employers often enter into express non-disclosure agreements with employees. This helps define what is and what is not a trade secret, and it is one of the ways the employer takes steps to maintain secrecy. Courts usually enforce these agreements if the information is not generally available in the outside world and if the employer has taken steps to keep it a secret.

Non-employees can also be liable for misappropriating trade secrets. If an employee quits and goes to work at another business, and that business obtains the trade secret through that employee with knowledge of where it came from, then that business can be liable to the original employer.

Coming next: Whistleblowing #13: Employment Law 101

LawMemo.Com

Google
 
Web www.LawMemo.com 
This form will search the LawMemo web site. It does not include the Caselaw Database.

Editor: Ross Runkel, Professor of Law Emeritus. email Ross@LawMemo.Com, Phone 503-399-8028. Copyright LawMemo, Inc.

  • Employment Law Memo emails designed for lawyers. 
  • Expert summaries of decisions from all federal and state appellate courts. 
  • Direct link to full text. 
  • Click here for free 4-week subscription