Can trade secrets be lost through the disclosure of information?

Yes, trade secrets can be lost through the disclosure of information. In California, the law of trade secrets is governed by the Uniform Trade Secrets Act (UTSA). The UTSA states that a trade secret may be lost through the disclosure of information if it is released to the public or to a person who obtains the information in a manner that is not consistent with the reasonable expectations of the owner of the trade secret. In addition to the UTSA, California courts recognize the related concept of “inevitable disclosure.” Under this concept, a trade secret can be lost through the disclosure of information if it is revealed to an individual who is likely to use the information in a manner not consistent with the reasonable expectations of the owner. For example, if an employee of a company knows of a trade secret and then goes to work for a competitor, that trade secret may be lost through its disclosure if the former employee is likely to use the information for the benefit of the competitor. It is important for businesses to be aware of the laws surrounding trade secrets and the ways in which they can be lost. If a company suspects that its trade secrets have been disclosed, it should immediately seek legal advice to protect itself from further disclosure. In California, it is also a good idea for companies to have written agreements in place that specifically protect their trade secrets.

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Can trade secrets be lost through the disclosure of information?

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