How do you determine whether information is a trade secret?

In California, the law protects businesses’ trade secrets by punishing criminals who either steal, or attempt to do so, a company’s private and confidential information. To define trade secrets, California courts use the Uniform Trade Secrets Act (UTSA). This act examines a few factors in evaluating whether a piece of information is a trade secret. The main consideration for determining if something is a trade secret is if the information is valuable, meaning it cannot be easily acquired or derived by the public. The UTSA also examines the extent the company protects and guards the information from becoming known, as well as how much effort the company has put in to keep the information secret. Lastly, the UTSA evaluates if the company derives some actual benefit from the information. If the UTSA determines that all of these criteria have been satisfied, then it can be established that the information is considered a trade secret. Any information that meets all of these qualifications can potentially receive protection from California’s trade secret laws. If someone steals this protected information, they can face significant legal consequences, including fines and jail time. To ensure that business information is secure and confidential, companies should be sure to take all the necessary steps to meet all of the criteria defined by the UTSA.

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How do you determine whether information is a trade secret?

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