What types of information can't be protected as trade secrets?
In Texas, trade secrets law prevents the misappropriation or unauthorized use of confidential information. However, certain types of information cannot be protected as trade secrets. These include information that has been made public or is known in the industry, information that has been independently developed without using any of the information that is claimed to be a trade secret, and information that is obtained from a third-party who is free to disclose it without any restrictions. Additionally, information that is readily obtainable through proper means such as observing the product, reverse engineering, or ingenuity cannot be protected as trade secrets. For example, if a company produces a new type of car, its design cannot be protected as a trade secret since potential competitors could discover the design by simply examining the car. Similarly, a company’s customer list cannot be protected as a trade secret since potential competitors could simply ask current customers. Finally, information that is obtained illegally cannot be protected as a trade secret. For instance, if a company obtains confidential information by hacking into another company’s computer system, the information cannot be protected. In this case, the company that obtained the information illegitimately could be liable for damages. Therefore, it is important to be aware that certain types of information cannot be protected as trade secrets in Texas.
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