1. NOVELTY AND UTILITY REQURIED
“[For information to qualify as a trade secret] some novelty
will be required if merely because that which does not possess novelty is
usually known; secrecy in context of trade secrets, thus implies at least
minimal novelty.” Kewanee Oil Co. v. Bicron Corp., 416 U.S. 470 (1974).
“[State Farm asserted trade secret status as to various
information including] the names, addresses and telephone numbers of
policyholders, the amounts and types of insurance … due dates of premiums and
amounts thereof, … and particularly the renewal and expiration dates of
policies in force. … [T]he very recital of the nature of the information
acquired by the salesman and the unique interest of the company in the
information, places it in the category of the trade secret…” State Farm Mutual Automobile Insurance Co. v. Dempster, 174 Cal.
App. 2d 418 (1959).
2. DEGREE OF SECRECY REQUIRED
“[W]hat is a reasonable precaution … depends of a balancing
of costs and benefits that will vary from case to case ….” Rockwell Graphoc
Systems, Inc. v. DEV Industries, Inc., 925 F.2d 174 (7th Cir. 1991).
3. THEFT OF TRADE SECRETS
“One may use his competitor's secret process if he discovers
the process by reverse engineering applied to the finished product; one may use
a competitor's process if he discovers it by his own independent research; but
one may not avoid these labors by taking the process from the discoverer
without his permission at a time when he is taking reasonable precautions to
maintain its secrecy. To obtain knowledge of a process without spending the
time and money to discover it independently is improper unless the holder
voluntarily discloses it or fails to take reasonable precautions to ensure its
secrecy.” E.I. DuPont deNemours &
Co., Inc. v.Christopher, 431 F.2d 1012 (5th Cir. 1970).
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