| Trade secrets are a vital part of a corporation. As the | | | | order to be called thus, must: (1) contain information; (2) |
| name implies, it is a secret formula, technical | | | | not be generally known; (3) be treated as a secret and |
| information or business model that the corporation | | | | must be the subject of reasonable efforts to protect |
| must guard like a jealous lover. Otherwise, the | | | | or maintain its secrecy; and (4) derive economic value |
| corporation loses its edge in the cut throat world of | | | | from the fact that it is treated as a secret. |
| business and corporate race. Technically, a trade | | | | A trade secret, to be considered as consisting |
| secret is an intellectual property asset of the | | | | information, must either be a technical information or a |
| corporation. However, this asset, though very important | | | | business information. |
| is usually overlooked by the corporation since a trade | | | | In terms of economic value, it means simply that other |
| secret is an intangible. Trade secrets are information. It | | | | corporations, businesses or competitors in general |
| is therefore easy to steal. | | | | must necessarily spend time and money to develop |
| In California trade secret means information, including a | | | | the information. |
| formula, pattern, compilation, program, device, method, | | | | The fact that the trade secret must generally not be |
| technique, or process, that: | | | | known is self explanatory. If the information is known |
| (1) Derives independent economic value, actual or | | | | to the public, even to a few, the information is not a |
| potential, from not being generally known to the public | | | | secret. It is the condition that the information is not |
| or to other persons who can obtain economic value | | | | generally known is what makes it a secret information. |
| from its disclosure or use; and | | | | No information is secret or vital if it is already known or |
| (2) Is the subject of efforts that are reasonable under | | | | can easily be known by the public or even a select |
| the circumstances to maintain its secrecy. | | | | few. |
| The above definition of trade secret is an adaptation | | | | Finally, when the trade secret is said to be the subject |
| of the definition of the Uniform Trade Secrets Act | | | | of reasonable efforts to maintain its secrecy, it just |
| (UTSA) enacted in 1984. The same is codified under | | | | means that the possessor of the trade secret treats it |
| Section 3426 to 3426.11 of the California Civil Code. | | | | as a secret. That the owner or possessor of the |
| For an information to be considered as a trade secret, | | | | secret information expended time and money to keep |
| four elements must be present. The trade secret, in | | | | the information a secret. |