Misappropriation of trade secrets occurs when someone improperly acquires, uses, or discloses a trade secret without authorization. This can involve theft, bribery, or breach of confidentiality agreements. Defenses against such claims include proving independent development of the information, that the information was publicly known, or that the information doesn't qualify as a trade secret.
Misappropriation of Trade Secrets:
Misappropriation of trade secrets is the unlawful acquisition, disclosure, or use of a trade secret. A trade secret is defined as information that has economic value because it's not generally known and has been subject to reasonable efforts to maintain its secrecy.
Examples of Misappropriation:
Theft: Stealing physical documents or accessing computer systems to obtain trade secret information.
Bribery: Bribing an employee to disclose confidential information.
Breach of Contract: Violating a non-disclosure agreement (NDA) by disclosing trade secrets.
Espionage: Using illegal means to acquire trade secrets from a competitor.
Cybersecurity breaches: Hacking into a company's systems to steal trade secrets.
Defenses Against Misappropriation Claims:
Independent Development:
If the accused party can prove they developed the information independently without using the trade secret, it's a valid defense.
Public Knowledge:
If the information was already publicly known or readily ascertainable, it cannot be a trade secret, and therefore, cannot be misappropriated.
Lack of Reasonable Efforts to Maintain Secrecy:
If the trade secret holder didn't take reasonable steps to protect the information, it may not be considered a trade secret.
Accidental Disclosure:
In some cases, accidental or inadvertent disclosure may be a defense, especially if the holder didn't take reasonable steps to prevent it.
Lack of Notice:
If the party accused of misappropriation didn't know or have reason to know that the information was a trade secret, it may be a defense.

Misappropriation of Trade Secrets refers to the unauthorized acquisition, disclosure, or use of confidential business information by someone who knows or has reason to know that the information was obtained through improper means. Trade secrets can include formulas, designs, processes, or business strategies that provide a company with a competitive edge and are kept confidential. Misappropriation typically occurs when a current or former employee, competitor, or third party steals or discloses such information without consent, thereby violating the trust or legal protections surrounding the trade secret.

Defences to Misappropriation of Trade Secrets:
1. Independent Development – The accused party developed the same idea or process independently, without accessing or using the trade secret.

2. Public Domain – The information was already publicly known or readily accessible to others, and thus not a protectable trade secret.

3. Consent or Authorization – The trade secret was used with the owner’s permission or under a valid license.

4. Reverse Engineering – The information was lawfully obtained and reverse-engineered from a publicly available product.

5. Lack of Reasonable Measures – The owner failed to take adequate steps to keep the information confidential (e.g., no NDAs, poor security measures).

6. No Trade Secret Status – The alleged trade secret does not meet the legal criteria (such as economic value and secrecy).

7. Statute of Limitations – The claim was filed after the legally prescribed time limit had passed.