What Is A Trade Secret And How It Works In Anaheim

A Quick Intro To Trade Secrets And Misappropriation In California

Businesses strive to differentiate themselves from the competition. That's why they have the right to keep some information secret and can sue anyone who discloses it without permission.

This post will talk about trade secret laws often handled by one of our Anaheim Business Law Attorneys in California.

California business law

What Is A Trade Secret?

A trade secret is a valuable piece of information in the industry but is kept hidden. It is knowledge that has value for its owner and gives them a competitive advantage over their competitors. However, if information considered a trade secret is disclosed, it could significantly negatively impact the company.

Customer lists, information obtained by an employee indicating essential business opportunities, and information provided to an employee in confidence during the course and scope of his job could all be classified as confidential.

Unauthorized use "in a way contrary to honest commercial practices" of "undisclosed information" is protected as long as the information is:

  • It is a secret in the sense that it is not widely recognized or readily available to people who deal with similar information.

  • It has commercial worth.

  • It has been subjected to reasonable efforts to keep it secret by the person in charge of the information.

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The benefits of trade secrets include the fact that they do not need to be registered and have a limited protection frame and the fact that there are no registration charges and no formal compliance obligations to meet. The negative is that once a secret is made public, it can be reverse-engineered, and anyone can utilize the information.

The enforcement of trade secrets is often tricky. It can also be expensive, which is not ideal for small businesses and start-ups. On the other hand, trad