What Is the Uniform Trade Secrets Act?

Full Video Transcript

A trade secret, as the term implies, is a concept, formula, method, technique, or process that is used in the course of business and is not known by others. Many businesses depend on trade secrets for their business success. After all, where would Coca Cola or KFC be without their special recipes? Many employees are bound by contracts or workplace policies prohibiting the disclosure of a company’s trade secrets. However, unfortunately, trade secrets are often either improperly disclosed or outright misappropriated through the improper means of unscrupulous individuals. Sometimes, trade secrets inadvertently fall into the wrong hands by email or fax. But when this happens, the recipient is not allowed to use or to share that information either. The Uniform Trade Secrets Act imposes civil penalties such as damages and injunctions on those who improperly find out about and use trade secrets and provides remedies for the aggrieved party. Trade secret laws have become more consistent and concrete by virtue of the Uniform Trade Secret Law, which makes it easier to sue a wrongdoer for violating a trade secret holder’s rights.