Trade secret statutes are generally similar. For example, Florida’s trade secret statute defines trade secrets as information deriving independent economic value from not being readily ascertainable by others through proper means and is the subject of reasonable efforts under the circumstances to maintain the information’s secrecy. Fla. Stat. § 688.002. California likewise defines trade secrets…
Continue reading ›Establishing the existence of a trade secret requires the plaintiff to prove it owns information that derives independent economic value from not being generally known to other persons, is not readily ascertainable by proper means by other persons, and is the subject of reasonable efforts under the circumstances to maintain the trade secret’s secrecy. Fla.…
Continue reading ›American law recognizes that the protection of trade secrets results in substantial benefits to businesses and society. Kewanee Oil Co. v. Bicron Corp., 416 U.S. 470 (1974). Protecting commercial entities trade secret theft encourages investment in processes and technologies benefiting consumers. Therefore, trade secret laws promote “the efficient operation of industry” by affording those who…
Continue reading ›Most trade secret statutes provide the owner of a trade secret with an injunction remedy prohibiting another from disclosing the owner’s trade secret. Florida’s trade secret statute expressly provides that an injunction is permissible when disclosure is actual or threatened. Fla. Stat. § 688.003. (“Actual or threatened misappropriation may be enjoined.”). However, some courts have…
Continue reading ›Customer lists can be trade secrets. However, customer lists are not always trade secret. “To qualify as a trade secret, there must be evidence that a customer list was the product of great expense and effort, that it included information that was confidential and not available from public sources, and that it was distilled from…
Continue reading ›The statute of limitations proscribes the maximum time a litigant can initiate a legal proceeding after the occurrence of an event triggering the litigant’s claim. The limitations period varies depending on the claim type. The statute of limitations for a breach of a written contract is five years whereas the statute of limitations for a…
Continue reading ›The proponent of a trade secret must prove the information was “the subject of efforts that are reasonable under the circumstances to maintain its secrecy.” Fla. Stat. § 688.02. Simply instructing another not to divulge the information is probably insufficient. Glob. Marine Expl., Inc. v. Republic of France, 696 F. Supp. 3d 1131 (N.D. Fla.…
Continue reading ›A company suing for trade secret misappropriation should be cognizant of whether it must prove ownership over the trade secret. Some trade secret statutes require ownership to establish the claim, while other statutes do not. For example, a Florida business can probably sue for trade secret misappropriation under the federal Defend Trade Secrets Act (DTSA)…
Continue reading ›It is a good practice for businesses to require its employees to sign restrictive covenants, such as non-compete and confidentiality agreements, to protect trade secrets or confidential business information. If an employee breaches the restrictive covenant, the business could file a lawsuit against the employee to enforce the restrictive covenant. To succeed in the lawsuit,…
Continue reading ›Recovering attorney’s fees is governed by the American Rule. This rule generally prohibits a party from recovering his or her attorney’s fees unless the fees are expressly permitted pursuant to a contract, statue, or rule. Q.H. v. Sunshine State Health Plan, Inc., 305 So. 3d 543 (Fla. 4th DCA 2020) (“Under the American rule, a…
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