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Traditionally, trade secret protection comes to mind when one is seeking to protect a compilation of information or a formula, e.g., the formula for Coke. However, a recent decision by a California court makes it clear that trade secret protection is also available for ideas. Altavion, Inc. v. Konica Minolta Systems Laboratory, Inc., Cal. Rptr. 3d , 2014 WL1846104 (Cal. App. 1 Dist.)
The Uniform Trade Secrets Act ("UTSA"), with minor differences from state to state, is the basis for trade secret protection. The UTSA defines a trade secret as
"information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and (2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy."
This case involved "digital stamping technology," bar codes that include encrypted information about the contents of the underlying document being stamped. The defendant argued "generalized ideas and inventions are protected by patents and thus cannot be trade secrets." The Court rejected the defendant's argument holding that "… it is clear that if a patentable idea is kept secret, the idea itself can constitute information protectable by trade secret law."
Your next new invention may be protectable either through a patent or as a trade secret. Patents offer strong protection, but they are expensive, require disclosure of the best mode, and expire 20 years after application or sooner if invalidated. A trade secret offers weak protection (because it does not provide a defense against independent invention), but it is inexpensive, requires no disclosure, and can last forever. What will your choice be?
We can help!
If you have questions about securing or defending your intellectual property, please feel free to contact a member of the Patent, Trademark & Licensing Group.
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The Devine, Millimet & Branch Patent, Trademark & Licensing Practice Group offers this free E-Mail Alert service to provide information on recent developments in patent, trademark & licensing law. If you have any questions about this e-mail, or if you know of anyone else who may be interested in receiving these alerts, please send us an email at ipalert@devinemillimet.com.
This is not a legal document nor is it intended to serve as legal advice or a legal opinion. Devine, Millimet & Branch, Professional Association makes no representations that this is a complete or final description or procedure that would ensure legal compliance and does not intend that the reader should rely on it as such.
© Copyright 2014 Devine Millimet & Branch, Professional Association
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