Legal Question in Business Law in Georgia

Re: Theft of Trade Secret

Theft of trade secrets is governed by statutes and court decisions interpreting the statutes. The specific statutes can be found in O.C.G.A. � 10-1-761, and the next few code sections. You can look at these statutes at http://www.ganet.state.ga.us/services/ocode/ocgsearch.htm. Type in �trade secret misappropriation� in the search box.

Generally, misappropriation is defined as:

(A) 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

(B) Disclosure or use of a trade secret of another without

express or implied consent by a person who:

(i) Used improper means to acquire knowledge of a trade

secret;

(ii) At the time of disclosure or use, knew or had reason to

know that knowledge of the trade secret was:

(I) Derived from or through a person who had utilized

improper means to acquire it;

(II) Acquired under circumstances giving rise to a duty to

maintain its secrecy or limit its use; or

(III) Derived from or through a person who owed a duty to

the person seeking relief to maintain its secrecy or limit

its use; or

(iii) Before a material change of position, knew or had reason

to know that it was a trade secret and that knowledge of it

had been acquired by accident or mistake.

�Trade secret� is defined in that statute as�

"Trade secret" means information, without regard to form,

including, but not limited to, technical or nontechnical data, a

formula, a pattern, a compilation, a program, a device, a method,

a technique, a drawing, a process, financial data, financial

plans, product plans, or a list of actual or potential customers

or suppliers which is not commonly known by or available to the

public and which information:

(A) Derives economic value, actual or potential, from 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

(B) Is the subject of efforts that are reasonable under the

circumstances to maintain its secrecy.

There have been numerous court decisions interpreting these statutes, and this area of the law is VERY fact-specific. If you have any specific questions, you should contact an attorney directly.

The foregoing is general information only, not specific legal advice. No attorney/client relationship has been created or should be implied. Consult with an attorney of your choosing before taking legal action.