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California Trade Secret Law (Ca. Civ. Code, § 3426 et seq) is a set of laws that protects businesses from the unauthorized use of their trade secrets. A trade secret is any information that gives a business a competitive advantage, and is kept confidential by the business. This information can include things like customer lists, manufacturing processes, or marketing strategies.
The California Uniform Trade Secrets Act (CUTSA) is the primary law that governs trade secrets in California after January 1, 1985. The CUTSA defines a trade secret as "information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (1) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and (2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy."
To protect their trade secrets, businesses must take reasonable steps to keep the information confidential. This may include things like:
If a business believes that its trade secrets have been misappropriated, it can file a lawsuit against the person or company that it believes is responsible. The business may be able to recover damages, including lost profits, as well as an injunction to prevent the person or company from further using the trade secrets.
In addition to the CUTSA, there are a number of other laws in California that can be used to protect trade secrets. These laws include the California Penal Code, the California Business and Professions Code, and the California Civil Code.
The California Uniform Trade Secrets Act (CUTSA) is the primary law that governs trade secrets in California after January 1, 1985. The CUTSA defines a trade secret as "information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (1) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and (2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy."
To protect their trade secrets, businesses must take reasonable steps to keep the information confidential. This may include things like:
- Requiring employees to sign confidentiality agreements
- Limiting access to the information to those who need to know it
- Storing the information in a secure location
- Marking the information as confidential
If a business believes that its trade secrets have been misappropriated, it can file a lawsuit against the person or company that it believes is responsible. The business may be able to recover damages, including lost profits, as well as an injunction to prevent the person or company from further using the trade secrets.
In addition to the CUTSA, there are a number of other laws in California that can be used to protect trade secrets. These laws include the California Penal Code, the California Business and Professions Code, and the California Civil Code.