Legal Question in Business Law in California

customer names/database

I worked for a company in a capacity in which I converted and names/addresses in a customer database for mailing and promotional purposes. The company let me go, and I had in my possession copies of the database of names. They never asked for it back, or maybe weren't even aware that I had it.

I recently sent out a mailer for my new company which supplies a product that my old company is no longer an authorized reseller of.

How much trouble am I in?

Thanks.


Asked on 4/04/07, 4:35 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: customer names/database

If you'll re-read the first sentence of your question, you'll see that it doesn't read smoothly. I think you made a typing mistake and I'm unable to figure out exactly what you meant by "I converted and names/addresses."

Nevertheless, it looks to me as though you may be in pretty serious trouble.

Lists of customers' names and addresses are sometimes, but not always, trade secrets, and misappropriation of trade secrets is a civil offense and you could be sued. See Civil Code section 3426 through 3426.11; you should be able to find a copy of the code on line or at a larger public library.

Customer lists are not trade secrets if (1) the information, as assembled by the employer, is readily available without major time and effort, e.g. from the Yellow Pages or an industry directory, or (2) the employer makes little or no effort to maintain its secrecy. However, in a majority of the reported lawsuits I've seen for misappropriation of trade secrets in which the trade secret was a customer list, the plaintiff has prevailed.

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Answered on 4/04/07, 7:57 pm


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