Trade secrets are communicated by the employer to the employee, in the course of business, with the trust that he or she will not disclose them with anyone and that the trade secrets will remain confidential. A person is bound by the agreement that he or she will not disclose those facts to anyone. Therefore, the courts generally consider such breach under breach of confidence or contractual violation. Some people believe that trade secrets are used to silence the competition.
In Paperloop.com, Inc. v. GOW, the plaintiff filed a case for trade secret misappropriation, as he was the company’s former employee and had started a competing website. The defendant claimed that it was the plaintiff’s way of cutting the competition.
Free Speech
Free speech means that a person can speak or express his or her ideas or opinions without fear or interference. There is a legal limit to free speech. For example, a person cannot defame others on the pretext of free speech. Trade secret infringement lawsuits are frequently criticized for their impact on free speech. Some people believe that trade secret owners file a complaint because they want to cancel the competition and restrain the individual from discussing anything unfavorable about them. Trade secrets generally involve commercial speech. Commercial speech is protected to a lower extent by the First Amendment, but political speech is protected to a greater extent. In the Religious Technology Center v. Lerma litigation, the court held that the purpose of the Religious Technology Center was to restrain the criticism and harass the critics, so the plaintiff was held liable. However, this does not mean that the employee can disclose the trade secrets of the company.
Trade Secrets
All the cases are not the same as the Religious Technology Center; in some cases, the court has recognized the right of the employer to preserve and protect the trade secrets. One of the purposes of trade secrets is to maintain commercial ethics. The company should not hire the former employee of the competitor company only to extract the secrets of that company, and such a practice is unethical. The Uniform Trade Secret Act governs the trade secret. It has been accepted in parts or wholly in forty-five states, and the District of Columbia and states where the legislation does not apply follow the reformation of torts regulation for trade law.
Proprietary interests: Trade secrets are treated as property by their owners, who can sue in the same way that a trespasser or thief can be prosecuted.
Commercial privacy: In E.I. DuPont de Nemours & Co. v. Christopher, the plaintiff sued the defendant for misappropriation of trade secrets. He was hired for ariel photography but obtained the trade secrets through improper means. The court held that commercial privacy must be protected.
Conclusion
The trade secret and free speech are both taken into consideration by the court. The court looks if the fact is a secret or not and if due care was taken to protect the trade secret by the owner. The owner of the trade secret must prove the reason for protecting the trade secret, and if he or she fails to prove it, the defendant can argue for the claim of the defendant’s bad faith. The trade secret owner must demonstrate that he or she intends to protect the trade secret. The trade secret is no longer a trade secret once it is made public, and anyone can utilize it. Since the employer has entrusted the employee and told him or her the trade secrets in the course of business, the employee must not break his or her trust and not disclose the trade secrets to anyone. The court considers the intent of both the parties and gives a decision according to the facts and situations of each case. The trade secret must be used by the employer as a shield to protect the company’s secrets and not as a sword for an employee to force him or her to stay at the company or remain unemployed.
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