What is a trade secret under Wisconsin and federal law?
Under both Wisconsin and federal law, a “trade secret” generally involves three things:
- certain types of information which may be protected as a “trade secret”;
- the information derives independent economic value (either actual or potential) from not being generally known to, and not being readily discovered by proper means by, others who could obtain economic value from its disclosure or use; and
- the information is subject to reasonable efforts to keep it secret.
Under Wisconsin law a “formula, pattern, compilation, program, device, method, technique or process” are types of information which may be protected as a “trade secret” if points 2 and 3 above also apply.
If points 2 and 3 above also apply, the following types of information may be protected as a “trade secret” under federal law: “all forms and types of financial, business, scientific, technical, economic, or engineering information, including patterns, plans, compilations, program devices, formulas, designs, prototypes, methods, techniques, processes, procedures, programs, or codes, whether tangible or intangible, and whether or how stored, compiled, or memorialized physically, electronically, graphically, photographically, or in writing.”
Congratulations, you may have a trade secret if you have protectable information under either Wisconsin or federal law to which points 2 and 3 above also apply. But what reasonable business processes are you developing and what reasonable legal steps are you taking to protect the secrecy of your trade secret?
[Legal advice not only involves an understanding of the law, but the application of the law to a particular set of circumstances or facts. Typically blog posts are imperfect tools to address the subtlety and exceptions of the law that may apply in particular situations. As a result, the information in this blog post does not represent legal advice. If you are in a situation where you need or desire legal advice, we would be happy to help. Check out our Contact Us page, and feel free to set-up a no-charge initial consultation.]