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