Intellectual Property Law

New Matter SUMMER 2022, VOLUME 47, EDITION 2

TRADE SECRET REPORT

Conor Tucker
Wilson Sonsini Goodrich & Rosati

TRADE SECRETS—DTSA "REASONABLE MEASURES" TO MAINTAIN SECRECY

Turret Labs USA, Inc. v. Cargosprint LLC, No. 21-952, 2022 WL 701161 (2d Cir. Mar. 9, 2022).

The Second Circuit affirmed dismissal of this trade secret case, finding that the plaintiff had alleged insufficient "reasonable measures" to maintain secrecy. The court held that what is "reasonable" depends on the nature of the trade secret itself, and "where an alleged trade secret consist primarily, if not entirely, of a computer software’s functionality—functionality that is made apparent to all users of the program—the reasonableness analysis will often focus on who is given access, and on the importance of confidentiality and nondisclosure agreements to maintaining secrecy." Plaintiff did not allege any confidentially or nondisclosure agreements governing the use of its software. Further, individuals "could simply be given access…and view and replicate [the program’s] functionality." "In the absence of nonconclusory allegations that it took reasonable measures to keep its information secret, [plaintiff] has not plausibly alleged…misappropriat[ion] of a ‘trade secret.’"

Join CLA to access this page

Join Now

Forgot Password

Enter the email associated with you account. You will then receive a link in your inbox to reset your password.

Personal Information

Select Section(s)

CLA Membership is $99 and includes one section. Additional sections are $99 each.

Payment