Trade Secrets
A “trade
secret” can be any information that derives
independent economic value from not being generally
known or readily ascertainable. Some typical factors
that are used to determine whether something is
a trade secret include: the extent to which the
information is known outside of the business; the
extent to which it is known to those inside the
business (i.e. by employees); and the precautions
taken by the holder of the trade secret to guard
the secrecy of the information.
Although most states have legislation addressing
trade secrets, trade secret protection typically
derives from common law principles and the Uniform
Trade Secrets Act (UTSA). The UTSA, which has helped
to create a more uniform body of trade secret law
between the states, makes it a crime for any Federal
employee to knowingly disclose the trade secrets
of a private party (18 U.S.C. § 1905); makes
it a crime for any U.S. citizen, permanent resident
alien, or organization organized under Federal,
state or local law to disclose trade secrets (18
U.S.C. § 1832) and increases the penalties
if such disclosure is made to a foreign country
government (18 U.S.C. § 1833); permits injunctive
relief against the United States if there is a
threat of knowing or inadvertent disclosure of
a trade secret by the U.S. Government; and permits
the U.S. Court of Federal Claims to award monetary
relief in favor of a private party against the
United States for damages resulting from the government's
improper disclosure of a trade secret.
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