By and large trade secret law is the same in different states. However, some of the details may differ across the different states, especially in areas regarding the manner in which the misappropriation occurred, the steps undertaken to maintain the secrecy of a particular trade secret, and the damages that may be recoverable.
Forty-three states and the District of Columbia follow the Uniform Trade Secret Act. This act gives specific trade secret law definitions for exactly what a trade secret is, how it must be protected and when it has been misappropriated. Under the Uniform Trade Secret Act, “Trade secret means information, including a formula, pattern,compilation, program device, method, technique, or process, that: (i) derives economic value, actual or potential, from no being generally known to, and not being readily ascertainable by proper means, 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.”
The baseline requirement for protecting a trade secret is to utilize non-disclosure agreements. These contracts inform employees that the information is confidential and may never be shared with anyone who does not have clearance. In addition, the act suggests marking documents as confidential, using a safe to protect the information, and using non-compete agreements that prevent employees with the information from going into business for themselves.
For the states that follow the Uniform Trade Secret Act, you must prove that:
The Uniform Trade Secret Act is followed by the majority of states and this article gives a general overview of the act and its requirements. If your trade secret has been misappropriated, always consult with an attorney for determining the necessary course of action.