Are there any criminal penalties for the misuse of trade secrets?

In California, there are criminal penalties for the misuse of trade secrets. Under California Penal Code § 499c, it is a crime to intentionally misappropriate a trade secret, defined as “information, including a formula, pattern, compilation, program, device, method, technique, or process…that is used in one’s business, and that gives the business a competitive advantage over those who do not know or use it.” The punishment for such an offense can include a fine of up to $5,000, imprisonment of up to one year, or both. In addition, there are federal criminal sanctions as well. Under the Defend Trade Secrets Act of 2016, it is a crime to knowingly or recklessly misappropriate a trade secret that is related to a product or service used in interstate or foreign commerce. The crime can be punished by a fine of up to $5 million, imprisonment of up to 10 years, or both. In conclusion, misuse of trade secrets can have both criminal and civil consequences in California. Misappropriation of a trade secret can lead to fines, imprisonment, or both. It is important to understand and abide by the law in order to avoid possible criminal penalties.

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