Trade Secrets

Confidential business information that provides a competitive edge may be considered a trade secret. It is information that derives financial or economic value from not being generally known to others who could profit from it. In order to qualify as a trade secret, a business must take reasonable efforts to maintain its secrecy.

If your California employer has not protected its company information and/or did not inform you that the information you are receiving is confidential, it may not be considered a trade secret and a claim against you for trade secret misappropriation may not be valid.

Examples of trade secrets:

• Client lists
• Business plans;
• Financial information;
• Devices
• Formulas;
• Patterns;
• Unannounced products that derive commercial value from being kept secret

Trade secret and employee mobility differs from state to state. In California, trade secret lawsuits may include claims of trade secret identification, breach of contract, and breaches of implied covenants of good faith and fair dealing. One of the more complex issues is threatened misappropriation, which is a threat to misuse trade secrets (as manifested by words or conduct). For this claim to succeed, the evidence against you must indicate imminent misuse.