A decision to dismiss a complaint alleging trade secret misappropriation was upheld because restrictions on the use of materials expired under the agreement's terms. Once the contract expired, the secrets were no longer protectable.
Why This Is Important... Common law requires that a trade secret be subject to reasonable steps to protect its secrecy and remain secret. The contract here, like many nondisclosure agreements, had a limited term. The court found that once the contract term was over and the other party had no duty, the trade secret was no longer a trade secret because it was no longer subject to protection.
Comments