1. Intellectual Property Boston College Law School February 7, 2007 Trade Secret – Part 2

2. Uniform Trade Secrets Act §1. Definitions –(4) “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (i) derives independent economic value … from not being generally known to, and not being readily ascertainable by proper means..., and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy

3. Uniform Trade Secrets Act §1. Definitions –(1) “Improper means” includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means ….;

4. Aerial Photography

5. Examples: Improper Means Improper Means? –Observing neighbor’s laptop on airplane –Striking up a conversation w/ employee (and making false statements about who you are) –Eavesdropping with long-distance microphone –Using a telescope to peer through windows –Going through a company’s trash in public dumpsters

6. Hypo: Acquisition Facts –Company A wants to acquire competitor B –Company B has certain trade secrets Questions –What advice to give company A? –What advice to give company B?

7. Uniform Trade Secrets Act § 1. Comment –“Proper means include: 1. Discovery by independent invention; 2. Discovery by reverse engineering, … … 4. Observation of the item in public use … 5. Obtaining the trade secret from published literature”

8. Problem 2-11 Facts –Atech makes diagnostic equipment –Alpha hires 3 rd party to buy – studies it –Picks internal locks to access secrets inside Questions –Did Atech take “reasonable efforts”? If not, what more could they have done? –Impact of an end-user licensing agreement?

9. Administrative Next Assignment –Finish III – Trade Secret