Legal Question in Intellectual Property in California

Re: trade secrets

Consider that trade secret law varies state-by-state and the interpretation of a non-compete agreement and definition of a trade secret may depend upon the applicable state law. California is a signatory to the Uniform Trade Secrets Act that was an attempt by a number of states to unify trade secret law. However, California has a different and broader definition of a trade secret than many of the other UTSA states and provides that:

�Trade secret� means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and

(2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

If a non-compete agreement is in place then you should have an attorney review it under the applicable state law to determine its scope and effect. Virtually anything that the former employer tried to prevent from being publicly known, including customer lists, is a potential trade secret.

Regards,

Don Cox