Are there any exceptions to trade secret protection?

Yes, there are exceptions to trade secret protection in California. The most notable exception is the doctrine of "inevitable disclosure." This doctrine states that if a trade secret is going to be disclosed - regardless of whether or not the trade secret is kept confidential - then it may not be protected. In other words, if a trade secret is going to enter the public domain through the natural progression of events, then the holder of the trade secret may not be able to prevent the disclosure of the information. In addition, the federal Defend Trade Secrets Act of 2016 (DTSA) provides for an exception to trade secret protection if the trade secret is acquired by an individual, or business, from a third party who acquired the trade secret through misuse or improper means. In this case, the original holder of the trade secret is not allowed to pursue legal action against the “acquiring” party for misusing or improperly obtaining the trade secret. Finally, in California, the courts may also recognize an exception to the trade secret laws wherein a court finds that the public interest outweighs the benefits of trade secret protection. This exception is rarely invoked and is determined on a case-by-case basis. In summary, while trade secret laws offer broad protection to confidential information, there are exceptions to these laws, including inevitable disclosure, acquisition through misuse or improper means, and public interest.

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