Trade Secret Laws  

        Trade secret refers to anything that is usually not known about a business, but gives the business a competitive business advantage over its rivals. A trade secret can be formulae, practices, design, practices, information or anything else. A trade secret is not public knowledge.

        Anyone who holds the secret will get some economic benefit from it. This is the main reason why some companies demand employees or contractors to sign a non disclosure agreement. The signing of this agreement ensures that the concerned person cannot leak out the secret or use it for some other purpose.

        When a person signs a non disclosure agreement, in effect, he or she is agreeing not to disclose the secret to another person or business. Nonetheless, business is a competitive field. Companies are forever trying to find out the secret of success of their competitors. Some companies use the method of reverse engineering where they try to find out the technical basis, while other employ unscrupulous methods to get information on a competitor's trade secret.

        However, if a person or company gets the trade secret of a competitor or rival through illegal methods, then it is a violation and subject to prosecution. The US has laws that administer trade secret. This law is the Uniform Trade Secrets Act, and is followed by 46 states in the US. This Act deals with issues related to misappropriation of trade secrets.

        The other law that governs trade secret is the Economic Espionage Act. The law makes misappropriation of trade secret a federal crime, which is punishable by fine of up to $500,000 and imprisonment of up to 15 years where individuals are concerned and organizations can be fined up to $10 million. Even receipt of trade secret through illegal means is tried under this law.

        If a trade secret is related to a product that is being produced for sale, and that trade secret is misappropriated with the intentions of causing damage or harm to the owner of the secret, an individual can be imprisoned for up to 10 years, while an organization has to pay a fine of up to $5 million under the Economic Espionage Act. WelcomeToWelcomeRocketswag



Trade Secret Laws

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