Trade Secrets And Know How Agreements

was embezzled and forced to pay $300 million. In another case, Lexar received $465.4 million in damages from Toshiba for the misappropriation of controller technology, which allowed a memory chip to communicate with its host device.13 Recognizing the need for stronger and more robust trade secret protection, Congress passed the DTSA as an amendment to the Economic Espionage Act, a federal criminal law, in order to bring a private civil remedy. This new law has attracted a lot of attention in the media and the potential for significant damages or comparisons. Therefore, the use of a trade secret by a person who acquired this information as part of a legitimate business transaction without negligence is not considered illegal. A trade secret may consist of a formula, design, device or compilation of information that is used in its own activities and that allows it to gain an advantage over competitors who do not know or use it. It can be a chemical compound formula, a process for manufacturing, processing or preserving materials, a model for a machine or other device, or a customer list.4 Trade secret protection does not apply to people who have received the same information from another source. A customer list may be considered a trade secret, but a competitor may have established the same list independently of the other (for example. B if the number of potential customers is limited). In addition, the information could have come from a public source, which means that there was no misappropriation of trade secrets.