Uniform Trade Secrets
Act
Nan Knight
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Even if you don't sign a noncompete, the provisions
of the
Uniform Trade Secrets Act and its equivalent
state-level legislation prevent you from taking
private information that's vital to your company's
success to a competitor or using it to start your
own business. According to the Act, "trade
secret" means "information, including
a formula, pattern, compilation, program, device,
method, technique, or process, that: (i) 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 (ii) is the subject of
efforts that are reasonable under the circumstances
to maintain its secrecy." According to a
release from the Minnesota law firm of Mansfield,
Tanick, and Cohen, the information protected under
the act is quite broad in scope and can include
manufacturing processes, the formulae for products,
software, customer lists, general corporate strategy,
business plans, and marketing techniques. The
courts take cutting-edge science or technology
especially seriously when considering the transfer
of trade secrets. The Uniform Trade Secrets Act
has been adopted (in various forms) by 40 states.
The states that have not adopted the act but which
have their own laws (some even more stringent)
about trade secrets are: Alabama, Massachusetts,
Michigan, North Carolina, New Jersey, New York,
Pennsylvania, Tennessee, Texas, and Wyoming.
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