Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

A Trade Secret By Any Other Name is Still a Trade Secret: Why UTSA Pre-emption Matters

By Tait Graves
April 01, 2004

Trade secret plaintiffs sometimes couch their claims under other, alternative titles, such as “common law misappropriation,” “unfair competition,” or “breach of confidence.” The tactic is often a deliberate ploy to avoid complying with state Uniform Trade Secrets Act (UTSA) statutes and case law governing trade secret litigation ' a body of law that favors former employees in many respects.

There is good news for attorneys who represent former employees and companies that hire them. A 2003 decision, the first of its kind under California law, holds that the UTSA pre-empts trade secret claims alleged under different names. California is the most prominent UTSA jurisdiction, and the ruling follows on the heels of numerous decisions elsewhere since the late 1990s. By taking advantage of such decisions in the early stages of a trade secret lawsuit, defendants can ensure that claims based on the alleged misuse of nonpublic information are litigated under the UTSA's statutory rules for trade secret claims ' as they should be. As will be explained below ' and using California law for illustrative purposes ' defendants can file two types of motions to seek an early UTSA pre-emption ruling.

The Problem

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Legal Possession: What Does It Mean? Image

Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.

The Stranger to the Deed Rule Image

In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.