Legal Question in Intellectual Property in California

Re: Using Job Interviews to Gain Intellectual Property

While more information may be required, such conduct is likely illegal!

California law prohibits "unfair competition...any unlawful, unfair or fraudulent business act or practice or other deceptive acts prohibited by law.

Under Civ Code 3426 "Improper" includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means. Reverse engineering or independent derivation alone shall not be considered improper means.

(b) "Misappropriation" means:

(1) Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or (2) Disclosure or use of a trade secret of another without express or implied consent by a person who: (A) Used improper means to acquire knowledge of the trade secret; or (B) At the time of disclosure or use, knew or had reason to know that his or her knowledge of the trade secret was derived from: or through a person who had utilized improper means to acquire it; acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use . . .

Trade secrets are creative works and compilations of information that give the owner a competitive advantage over other traders who would not be able to easily obtain or create the same information. This term is extremely broad, covering:

� business records, systems, and practices

� sensitive marketing manuals and materials

� price schedules

� supply sources

� customer lists

� prospective opportunities

� information on the effectiveness of personnel

Trade secrets remain protected so long as reasonable steps are taken to ensure that all persons with access to a trade secret keep such knowledge in confidence.

While no agreement can ever be enough to completely protect the inventor from thieves and dishonest businessmen, strong contracts, proper hiring methods and careful vendor/manufacturer/ marketing agreements, have served not only to keep the public from learning the formula for COKE, but also to keep imitators from coming too close in reproducing such products as bar-b-q sauce, seasoning mix, shampoo, pharmaceuticals, and software.

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