Posted by CMW on Dec 18, 2012 in Business Law
In 2012, the Colorado Court of Appeals addresssed whether a corporation’s client and debtor information is a trade secret. After analyzing certain factors, the Court’s answer is yes. To make this particular information a trade secret, the corporation must use “reasonable efforts” to maintain the claimed secrecy of information. This would include not allowing the information to be known outside the business by using a user name, password and other security measures. The Court further commented that a wrongful act exists when someone “improperly discloses or acquires” the confidential information. Actual use or commercial implementation is not necessary for a company to suffer damages. Therefore, a business would be wise to install simple security measures in order to protect its client and debtor information and protect a possible claim for its wrongful aquisition.