How would you describe the Uniform Trade Secrets Act?

Overview. The Uniform Trade Secrets Act (“UTSA”) is a piece of legislation created by the Uniform Law Commission (ULC), a non-profit organization. The USTA defines trade secrets and describes claims related to trade secrets. To date, 47 states and the District of Columbia have adopted the UTSA.

What is the purpose of the Uniform Trade Secrets Act?

The Uniform Trade Secrets Act (UTSA), a model law governing civil actions for trade secret misappropriation that was first published more than 30 years ago, has helped to protect trade secrets in the numerous states that adopted it.

What is the legal definition of trade secret?

A trade secret: is information that has either actual or potential independent economic value by virtue of not being generally known, has value to others who cannot legitimately obtain the information, and. is subject to reasonable efforts to maintain its secrecy.

What is the best definition of a trade secret?

A trade secret is any practice or process of a company that is generally not known outside of the company. Information considered a trade secret gives the company a competitive advantage over its competitors and is often a product of internal research and development.

What are examples of trade secrets?

Examples of trade secrets include:

• KFC’s secret blend of 11 herbs and spices.
• Coca-Cola’s recipe for their signature drink.
• Google’s search algorithm.
• McDonald’s Big Mac “special sauce.”
• Secret client lists at any company.

What are the elements of trade secrets?

Below we discuss the three elements of a trade secret, listed above.

• (1) The information is secret.
• (2) The information confers a competitive advantage.
• (3) The information is subject to reasonable efforts to keep it secret.

Are trade secrets illegal?

Intentional theft of trade secrets can constitute a crime under both federal and state laws. For example, in California it is a crime to acquire, disclose or use trade secrets without authorization.

Is it illegal to share trade secrets?

Many states have also enacted laws making trade secret infringement a crime. For example, in California it is a crime to acquire, disclose or use trade secrets without authorization. Violators may be fined up to $5,000, sentenced to up to one year in jail, or both.

What is not a trade secret?

However, no matter how advanced or unique the new product or process is, it will not be considered or protected as a Trade Secret unless the owner takes very careful steps to guard it as a secret. If possible, drawings and schematics which include Trade Secrets should be marked Confidential.

What companies have trade secrets?

What Cannot be a trade secret?

Definition of trade secret A trade secret continues for as long as the information is maintained as a trade secret. Anything that is easily and completely disclosed by the mere inspection of a product put on the market cannot be a trade secret.

Are customer lists trade secrets?

Types of trade secrets include client lists and the goods they buy, pricing and information about the businesses processes and dealings. Secret formulae, development of new products and processes and plans for financial expansion also can be protected as trade secrets even if they are untried or untested concepts.

What is uniform trade secret?

The Uniform Trade Secrets Act ( UTSA ), published by the Uniform Law Commission (ULC) in 1979 and amended in 1985, is a Uniform Act promulgated for adoption by states in the United States. One goal of the UTSA is to make the state laws governing trade secrets uniform, which is especially important for companies that operate in more than one state.

What is the legal definition of a trade secret?

Trade Secrets Law and Legal Definition. A trade secret is a process, method, plan, formula or other information unique to a manufacturer, which has value due to the market advantage over competitors it produces.

What is trade secret federal law?

Trade secrets are also protected under federal criminal laws, i.e. the Economic Espionage Act of 1996, as well as state criminal laws. Unlike patent, trademark, or copyright protection, there is no set time period for trade secret protection. A trade secret is protected as long as it is kept secret.

What is Federal Trade Secret?

A trade secret is basically any information that’s unique and valuable to your business but isn’t known to people outside of your business. Trade secrets can be protected under state and federal law.