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The Curious Persistence of the Six-Factor Trade Secret Test, Part 2
Part Two: Compatibility of the Trade Secret Tests
This two-part article discusses the requirements for information to be considered a trade secret under U.S. law, focusing on courts’ continued use of the six-factor test outlined in the Restatement of Torts. Part One covered the evolving tests for establishing a trade secret, while Part Two examines the compatibility of those tests and potential considerations for litigators and legislators.
The Evolution of Trade Secret Tests Raises Questions About Their Compatibility
Tension Between Definitions
The evolution of the Restatements’ and the Uniform Trade Secrets Act’s (UTSA) definitions for “trade secret” suggests a tension. On one hand, the authors of the 1995 Restatement believe that all the definitions are basically the same. They argue that the 1995 Restatement definition “is intended to be consistent with” the UTSA definition and that the “principles” in the Restatement “are applicable to” the UTSA.
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