Given last week’s 410-2 House vote for the Defend Trade Secrets Act (DTSA), the new federal based, private civil cause of action has now passed both the House and Senate and is headed to President Obama for his expected signature. Before the DTSA becomes law, it is an appropriate time to review existing various state trade secret rights which will also be available to potential parties who might qualify for the civil remedies these laws provide.
The Uniform Trade Secrets Act (“UTSA”)
The USTA protects information 1) that is actually or potentially economically viable, 2) due to its not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and 3) that is the subject of reasonable efforts to maintain secrecy.
Restatement (Third) of Unfair Competition (“Restatement of Unfair Competition”)
The Restatement of Unfair Competition protects any information that 1) can be used in the operation of a business or other enterprise, and 2) is sufficiently valuable and secret to afford an actual or potential economic advantage over others.
Restatement of Torts (“Restatement of Torts”)
The Restatement of Torts protects any information 1) used in one’s business, that 2) gives its owner an opportunity to gain an advantage over competitors who do not know or use it, and 3) that actually is a secret.
For more information on the DTSA and the other trade secret related laws, please contact www.ascendantip.com.