Scope of injunction narrow based on rejection of inevitable disclosure doctrine In a trade secret case, courts tailor the scope of an injunction to narrowly protect the trade secret information of the trade secret owner. Anything more may prevent others from being able to seek employment or engage in a lawful profession which goes against California’s strong public policy of … [Read more...]
Trade secret
A trade secret is information that derives independent economic value from not being generally known to the public or other persons who can obtain economic value from its disclosure or use and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. Sections 3426 to 3426.11 of the California Civil Code.
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Non-compete agreement enforceable when part of sale of business
Tension between Trade Secret and California’s Section 16600 Most states in the United States have adopted some form of the Uniform Trade Secrets Act which protects information considered to be valuable due to its secrecy. However, in an employment situation, employees learn the trade secrets of its employer over a period of time. When the employee switches employment, the … [Read more...]
CFAA applicable to hackers and not employees with authorized access
Scope of CFAA In U.S. v. Nosal, the scope of liability under the Computer Fraud and Abuse Act (CFAA) was at issue. The CFAA was primarily enacted to combat the problem of computer hacking. However, employers have been applying the CFAA to instances where employees have authorized access to company information but have misused the information. In Nosal, an ex-employee set up a … [Read more...]
Trade Secret Exception to Section 16600
California has a strong public policy that allows employees to change jobs, seek employment, or otherwise practice their trade or skill. This policy is embodied in Business and Professions Code Section 16600 (“Section 16600”). Under Section 16600, all contracts that restrain an employee’s ability to work are void unless the contract is based on a dissolution of partnership or … [Read more...]