What is a trade secret? What must a plaintiff prove under common law to enjoin a competitor for continuing the use of a trade secret, or to recover damages caused by the use of the secret?

Question

What will be an ideal response?

Answer 1

A trade secret is a process, product, method of operation, or compilation of information that gives a businessperson an advantage over his or her competitors. Inventions and designs may also be considered trade secrets. A trade secret is protected by the common law from unlawful appropriation by competitors as long as it is kept secret and comprises elements not generally known in the trade. Businesses usually try to protect their trade secrets by having employees with access to trade secrets sign nondisclosure agreements.
Competitors may discover the "secret" by any lawful means, such as reverse engineering or by going on public tours of plants and observing the use of trade secrets. Discovery of the secret means there is no longer a trade secret to be protected.
Under common law, to enjoin a competitor from continuing the use of a trade secret, or to recover damages caused by the use of the secret, a plaintiff must prove that:
a. a trade secret actually existed;
b. the defendant acquired it through unlawful means, such as breaking into the plaintiff's business and stealing it or securing it through misuse of a confidential relationship with the plaintiff or one of the plaintiff's present or former employees; and
c. the defendant used the trade secret without the plaintiff's permission.