TRADE SECRETS

A trade secret is defined in the California Civil Code as "information, including a formula, pattern, compilation, program, device, method, technique, or process that: derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure; and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. "

In fact, California has enacted the Uniform Trade Secrets Act to codify the law which had developed by judicial decision for remedies in the event of misappropriation of a trade secret. Typically, a well-drafted trade secret agreement will protect most employers and their confidential information from employees or others who have agreed to be bound by the agreement.

A trade secret agreement can be an essential tool to fill in gaps in protection usually provided by other theories. For instance, copyright precludes another from copying, but it only applies to the statement of the idea, not the idea itself. Some matters are not patentable and therefore not available for this purpose. Both copyright and patent, as stated earlier, are finite in the length of time provided by statute. Whereas, a trade secret may last an infinite period, e.g., the secret formula of Coca-Cola.

The Uniform Trade Secret Act authorizes injunctive relief for not only actual, but threatened misappropriation of a trade secret. If successful, the plaintiff may also recover damages for the misappropriation. Any illegal profit or unjust enrichment may be awarded as well as actual damages sustained by the plaintiff. This award may be doubled if the misappropriation was particularly heinous and willful. Moreover, the court has power to award a reasonable attorneys fee and costs in the appropriate case.