Understanding the Federal Defense of Trade Secrets Act of 2015
As the Defense of Trade Secrets Act ("DTSA") makes its way through Congress with bilateral support and the endorsement of the President, it is worthwhile to examine the statute with…
Overbroad Non-Compete Cannot Be Saved
In Beverage Systems of the Carolinas, LLC v. Associated Beverage Repair, LLC, 2016 WL 1084117 (N.C. Supreme Court Mar. 18, 2016), the North Carolina Supreme Court reiterated the adoption of…
What’s Wrong With Arbitration?
I preface this post with the disclosure that in my practice I serve both as an arbitrator -- AAA administered and privately administered -- and as an advocate in arbitration.…
UK Proposal For Fixed Litigation Fees
Here is an interesting lecture suggesting that legal fees in the U.K. be fixed for small to medium-sized disputes. Download the lecture paper here. Establishing set prices across the board for…
Value-Based Legal Fees
At Meynardie & Nanney, we price our services in a variety of ways but encourage our clients to consider the benefits of fixed fee value based billing. Since the mid-1970s,…
Do I Have a Trade Secret?
A trade secret is business or technical information that is not generally known and not readily ascertainable through independent development or reverse engineering as long as the owner takes reasonable steps to protect the secrecy.
1. Does North Carolina protect trade secrets?
Yes. North Carolina has adopted an amended version of the Uniform Trade Secrets Act “(“UTSA”). The Trade Secrets Protection Act (NCTSPA) can be found at N.C. Gen. Statutes §§66-152 to 66-157. It was enacted in 1981.
2. How do I know if I have a protectable trade secret?
Under certain prescribed conditions, the following can be a protectable trade secret under the NCTSPA
- business or technical information, including but not limited to:
- a formula,
- a pattern,
- a program,
- a device,
- a compilation of information,
- a method,
- a technique, or
- a process.
In order to be protectable, however, the secret must derive independent actual or potential commercial value from not:
- being generally known or
- readily ascertainable through independent development or
- readily ascertainable through reverse engineering by persons who can obtain economic value from its disclosure or use; and
- is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
Further, North Carolina courts will consider an additional six factors to assist in determining whether material constitutes a trade secret: