TRADE SECRET REPORT
Wilson Sonsini Goodrich & Rosati
TRADE SECRETSâDTSA "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 functionalityâfunctionality that is made apparent to all users of the programâthe 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.’"