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Copyright Report May Constitute Trade Secret
The U.S. District Court for the District of Nevada decided a genuine issue of fact existed as to whether a master-copyright report prepared by a consultant for an adult-film distributor was a trade secret. V.C.X. Ltd. v. Burge, 2:06-CV-00641-PMP-RJJ.
According to the court: 'Although [consultant Robert] Burge states he prepared the Report from publicly available sources, [V.C.X. president David] Sutton avers that as much as seventy-five percent of the Master Copyright Report consists of VCX's proprietary and confidential information. Sutton states by affidavit that some information in the Report is obtainable only by viewing VCX's master films or contracts and licensing agreements, which is VCX's proprietary information. Sutton also states that VCX distributes many of its films pursuant to oral agreements and if Burge disclosed to competitors that VCX did not have documentary evidence supporting its distribution of these older films, competitors could use that information against VCX. Additionally, the Master Copyright Report reflects Burge's opinion on the films' copyright and distribution status. VCX and Burge entered into a confidentiality agreement under which Burge agreed not to disclose VCX's confidential information, thus suggesting VCX took some measures to keep its confidential information a secret.'
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