Opinion

Open (Trade) Secrets

Can you still claim your trade secrets were stolen if your security was sloppy?

By William Cook

After reviewing the facts, the court concluded that the information Weigh sought to protect was not a trade secret. It specifically concluded that the information contained in Weigh's so-called trade secrets was information that was generally known or readily ascertainable. It further held that Weigh did not take adequate steps to protect certain information from being acquired or duplicated by others. Because the information was not a trade secret, the court concluded that the former Weigh employees and Mark's Scales did not misappropriate the information from Weigh.

What do we draw from this case? First and foremost, your "adequate" security requirements change with time. You need to keep current on the technology, the case law and the regulations that apply to your business community. The adequacy standards that apply will vary between industries. Second, if your company brings a trade secret action against anyone, you, as the corporate security officer, will be a prime witness for the other side. You will be questioned at length in depositions and at trial about security practices you used and didn't use with respect to your company's trade secrets. Be prepared.

• Email
• Print
• Comments
• Digg This
• SlashDot