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A Brief History of Trade Secret Law briefhistory
Everyone has heard of tradesecrets. Employees areoften asked to sign anagreement regarding theirprotection, whereas
employers often worry that
employees will move to a
competitor and take the company’s
trade secrets with them. The
Internet appears to contain
information on every company
now in business (and many no
longer in business). Much of the
public corporate information now
available online would have been
viewed as trade secret information
just a few years ago.
What is a trade secret today? Are
trade secrets still important? Are
there any left to protect? If yes,
how can those secrets be protected
in today’s information age? Part
one of this article (in BioProcess
International’s October issue)
discussed legal definitions of trade
secrets in the United States and
their implications for protection.
Part two discusses federal
enforcement provisions and specific
methods companies can use to
protect their trade secrets.
THE ECONOMIC ESPIONAGE
ACT OF 1996 (EEA)
Although the Uniform Trade
Secrets Act (UTSA) was a valuable
update of the laws designed to
protect trade secrets, clearly more
was needed, particularly on a
federal level, because the states did
not uniformly adopt the act.
In 1996, Congress passed the
EEA to close a federal enforcement
gap in this important area of
intellectual property law and in
recognition of the increasing
importance of the value of
intellectual property in general
(and trade secrets in particular) to
the economic well-being and
security of the United States. The
EEA’s definition of trade secrets is
even broader than those of the
UTSA (1) and the 1939
Restatement of Torts (2). It defines
trade secrets as
All forms and types of financial,
business, scientific, technical,
economic, or engineering
information, including patterns,
plans, compilations, program
devices, formulas, designs,
prototypes, methods, techniques,
processes, procedures, programs,
or codes, whether tangible or
intangible, and whether or how
stored, compiled, or
memo
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