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CHAPTER 1: What Is Protectable as a Trade Secret? 1

A. The Majority Rule: "Trade Secret" as Defined by the UTSA 3

1. Meaning of"Information" 3

2. Meaning of"Independent Economic Value" 10

3. Meaning of"Not Generally Known" 14

4. Meaning of"Reasonable Efforts to Maintain Secrecy" 16

B. The Restatement (Third) of Unfair Competition View of Trade Secrets 25

C. New York, New Jersey, and Texas: The Restatement (First) of Torts Definition 30

D. The Massachusetts Definition 37

E. The North Carolina Definition 40

CHAPTER 2: Litigating Trade Secret Actions--Plaintiff's Perspective 43

A. Alleging Trade Secret Misappropriation 45

1. Misappropriation 45

2. Improper Means 46

3. Acquisition, Use, or Disclosure 49

4. Imputed and Joint Liability 50

B. Elements of Misappropriation Claim 51

C. Alleging Alternative Claims 54

1. State Law Claims 58

2. Federal Claims 77

3. U.S. International Trade Commission Investigation 87

D. Requirement to Identify Trade Secrets with "Reasonable Particularity" 92

E. Presumptions, Inferences, and Burden-Shifting 98

1. Inferring Use from Substantial Similarity of Products 98

2. Inferring Copying from Time to Market 99

3. Spoliation of Evidence 100

4. Presumption of Irreparable Harm 102

5. Presumption of Confidentiality 103

6. Presumption of Independent Economic Value 103

F. Preliminary Injunctive Relief 104

1. Bases for Relief 104

2. Seeking a Temporary Restraining Order 119

3. Obtaining a Preliminary Injunction 122

4. Bond Requirement 126

G. Choosing an Expert 128

H. Discovery Tactics 137

I. Remedies 139

J. Settlement 143

K. Procedural Considerations 146

1. Strategic Venue Choices 146

2. Statute of Limitations 151

L. Standing 156

CHAPTER 3: Litigating Trade Secret Actions--Defendant's Perspective 159

A. Defenses 161

1. Preemption 161

2. Statute of Limitations 185

3. Other Defenses 189

B. Effect of Arbitration Provision 206

C. Challenges to the Plaintiff's Trade Secret Identification 211

D. Discovery Considerations 213

1. Potentially Patentable Trade Secrets 214

2. Trade Secrets Potentially Disclosed to the Government 216

3. Other Trade Secret Disclosures by the Plaintiff 216

4. Trade Secrets Incorporating Antecedent Works 217

5. Plaintiff's Plan to Maintain Secrecy 217

6. Damages 218

7. Equitable Relief 219

8. Attorneys' Fees 220

9. Insurance Coverage 220

E. Finding Experts 221

CHAPTER 4: Corporate Trade Secret Protection Plans and Practices 225

A. Legal Requirements and Policy Considerations 226

B. Trade Secret Audits 229

C. Trade Secret Protection Plans 233

1. Overview 233

2. Employee Education and Work Practices 234

3. Facilities Protection 236

4. Visitor Precautions 237

5. Document Security 237

6. Electronic Security 239

7. Manufacturing Security 242

8. Unsolicited Inventions and Ideas 243

9. Sample Forms 244

D. Protecting Information Disclosed to the Government 246

1. Rules of Thumb 246

2. Protecting Trade Secrets While Contracting with the Federal Government 251

3. Preventing the Federal Government from Disclosing Trade Secret Information 261

CHAPTER 5: Hiring and Terminating Employees 269

A. Hiring Employees 270

1. Hiring Concerns 270

2. Document Collection 271

3. Employment Interview 271

4. Post-Interview Precautions 274

5. Sample Employee Confidentiality and Invention Assignment Agreement 280

6. Restrictive Covenants 284

B. Terminating Employees 285

1. Conducting Exit Interviews 285

2. Conducting a Post-Termination Investigation 287

3. Post-Departure Precautions 288

4. Sample New Employee Proprietary Information Protection Letter 289

5. Sample Termination Certificate 290

6. Sample Reminder Letter to Former Employee 291

7. Sample Compliance Request Letter to New Employer 292

8. Sample Employer "Compliance Request Letter" Response 293

CHAPTER 6: Criminal Prosecution of Trade Secret Misappropriation 295

A. Whether to Seek Criminal Prosecution 296

1. Benefits 296

2. Drawbacks 299

B. Persuading the Government to Prosecute 301

C. Federal Economic Espionage Act of 1996 303

1. Overview 303

2. Protection of the Victim's Trade Secrets 306

3. Elements of an EEA Violation 306

4. Remedies 310

5. Defenses 311

D. Other Potentially Applicable Federal Criminal Statutes 313

1. Mail Fraud and Wire Fraud 313

2. Deprivation of Honest Services 315

3. National Stolen Property Act 315

4. Unlawfully Accessing or Attempting to Access a Protected Computer 317

5. Copyright Infringement 319

6. RICO 321

7. Disclosure by a Federal Employee 322

E. State CriminalStatutes 323

1. California 323

2. New Jersey 329

3. New York 330

F. Creating a Compliance and Ethics Program to Reduce Criminal Exposure 331

APPENDIX: Overview of Trade Secrets Laws of Selected States 337

A. Arizona 338

B. California 340

C. Delaware 359

D. Florida 364

E. Georgia 371

F. Illinois 377

G. Indiana 386

H. Maryland 390

I. Massachusetts 392

J. Michigan 398

K. Minnesota 404

L. Missouri 409

M. New Jersey 415

N. New York 422

O. North Carolina 432

P. Ohio 436

Q. Pennsylvania 443

R. Tennessee 450

S. Texas 454

T. Virginia 462

U. Washington 468

V. Wisconsin 472

TABLE OF CASES 479

INDEX 565