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