{"id":2352,"date":"2021-10-25T03:56:55","date_gmt":"2021-10-25T03:56:55","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=2352"},"modified":"2022-05-09T20:08:39","modified_gmt":"2022-05-09T20:08:39","slug":"caci-4402-trade-secret-defined","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-4402-trade-secret-defined\/","title":{"rendered":"CACI 4402 \u201cTrade Secret\u201d Defined"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv3f45oi-0c499e436f5edee0bcddb5781036c200\">\n#top .av-special-heading.av-kv3f45oi-0c499e436f5edee0bcddb5781036c200{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv3f45oi-0c499e436f5edee0bcddb5781036c200 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv3f45oi-0c499e436f5edee0bcddb5781036c200 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id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv3f58bf-a67a1943cedc470630965f3be3cac8fb\">\n#top .av_textblock_section.av-kv3f58bf-a67a1943cedc470630965f3be3cac8fb .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv3f58bf-a67a1943cedc470630965f3be3cac8fb '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">4402\u00a0\u201cTrade Secret\u201d Defined<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">To prove that the [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">select short term to describe, e.g., information<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] [was\/were] [a] trade secret[s], [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] must prove all of the following:<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">1.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That the [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">e.g., information<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] [was\/were] secret;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">2.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That the [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">e.g., information<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] had actual or potential independent economic value because [it was\/they were] secret; and<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">3.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] made reasonable efforts to keep the [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">e.g., information<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] secret. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New December 2007; Revised April 2008 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>Give also\u00a0CACI No. 4403,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Secrecy Requirement<\/span>, if more explanation of element 1 is needed. Give\u00a0CACI No. 4412,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">\u201cIndependent Economic Value\u201d Explained<\/span>, if more explanation of element 2 is needed. Give\u00a0CACI No. 4404,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Reasonable Efforts to Protect Secrecy<\/span>, if more explanation of element 3 is needed. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cTrade Secret\u201d Defined.\u00a0Civil Code section 3426.1(d).<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018Trade secrets are a peculiar kind of property. Their only value consists in their being kept private.\u2019 Thus, \u2018the right to exclude others is central to the very definition of the property interest. Once the data that constitute a trade secret are disclosed to others, or others are allowed to use those data, the holder of the trade secret has lost his property interest in the data.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">DVD Copy Control Assn., Inc. v. Bunner<\/span>\u00a0(2003) 31 Cal.4th 864, 881 [4 Cal.Rptr.3d 69, 75 P.3d 1], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe \u2018test for a trade secret is whether the matter sought to be protected is information (1) that is valuable because it is unknown to others and (2) that the owner has attempted to keep secret. [Citation.] \u2026 [I]n order to qualify as a trade secret, the information \u201cmust be secret, and must not be of public knowledge or of a general knowledge in the trade or business.\u201d\u2009\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">AMN Healthcare, Inc. v. Aya Healthcare Services, Inc.<\/span>\u00a0(2018) 28 Cal.App.5th 923, 943 [239 Cal.Rptr.3d 577].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[A]ny information (such as price concessions, trade discounts and rebate incentives) disclosed to [cross-complainant\u2019s] customers cannot be considered trade secret or confidential.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Whyte v. Schlage Lock Co.<\/span>\u00a0(2002) 101 Cal.App.4th 1443, 1455 [125 Cal.Rptr.2d 277].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018[A] trade secret \u2026 has an intrinsic value which is based upon, or at least preserved by, being safeguarded from disclosure.\u2019 Public disclosure, that is the absence of secrecy, is fatal to the existence of a trade secret. \u2018If an individual discloses his trade secret to others who are under no obligation to protect the confidentiality of the information, or otherwise publicly discloses the secret, his property right is extinguished.\u2019 A person or entity claiming a trade secret is also required to make \u2018efforts that are reasonable under the circumstances to maintain its secrecy.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">In re Providian Credit Card Cases<\/span>\u00a0(2002) 96 Cal.App.4th 292, 304 [116 Cal.Rptr.2d 833], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe requirement that a customer list must have economic value to qualify as a trade secret has been interpreted to mean that the secrecy of this information provides a business with a \u2018substantial business advantage.\u2019 In this respect, a customer list can be found to have economic value because its disclosure would allow a competitor to direct its sales efforts to those customers who have already shown a willingness to use a unique type of service or product as opposed to a list of people who only might be interested.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Morlife, Inc. v. Perry<\/span>\u00a0(1997) 56 Cal.App.4th 1514, 1522 [66 Cal.Rptr.2d 731], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe sine qua non of a trade secret, then, is the plaintiff\u2019s possession of information of a type that can, at the possessor\u2019s option, be made known to others, or withheld from them, i.e., kept secret. This is the fundamental difference between a trade secret and a patent. A patent protects an\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">idea<\/span>, i.e., an invention, against appropriation by others. Trade secret law does not protect ideas as such. Indeed a trade secret may consist of something we would not ordinarily consider an\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">idea<\/span>\u00a0(a conceptual datum) at all, but more a\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">fact<\/span>\u00a0(an empirical datum), such as a customer\u2019s preferences, or the location of a mineral deposit. In either case, the trade secret is not the idea or fact itself, but\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">information<\/span>\u00a0tending to communicate (disclose) the idea or fact to another. Trade secret law, in short, protects only\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">the right to control the dissemination of information<\/span>.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Silvaco Data Systems v. Intel Corp.<\/span>\u00a0(2010) 184 Cal.App.4th 210, 220\u2013221 [109 Cal.Rptr.3d 27], original italics.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[I]f a patentable idea is kept secret, the idea itself can constitute information protectable by trade secret law. In that situation, trade secret law protects the inventor\u2019s \u2018<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">right to control the dissemination of information<\/span>\u2019\u2014the information being the idea itself\u2014rather than the subsequent use of the novel technology, which is protected by patent law. In other words, trade secret law may be used to sanction the misappropriation of an idea the plaintiff kept secret.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Altavion, Inc. v. Konica Minolta Systems Laboratory, Inc.<\/span>\u00a0(2014) 226 Cal.App.4th 26, 55\u221256 [171 Cal.Rptr.3d 714], original italics, internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he doctrine has been established that a trade secret can include a system where the elements are in the public domain, but there has been accomplished an effective, successful and valuable integration of the public domain elements and the trade secret gave the claimant a competitive advantage which is protected from misappropriation.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Altavion, Inc.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra<\/span>, 226 Cal.App.4th at p. 48.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>13 Witkin, Summary of California Law (11th ed. 2017) Equity, \u00a7\u00a7\u200989, 90<\/div>\n<div>Gaab &amp; Reese, California Practice Guide: Civil Procedure Before Trial\u2014Claims &amp; Defenses, Ch. 10(II)-A \u00b6\u200910:250 (The Rutter Group)<\/div>\n<div>Trade Secrets Practice in California (Cont.Ed.Bar 2d ed.) \u00a7\u00a7\u20094.8\u20134.10<\/div>\n<div>1\u00a0Milgrim on Trade Secrets, Ch. 1,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Definitional Aspects<\/span>, \u00a7\u20091.01\u00a0(Matthew Bender)<\/div>\n<div>3 Levy et al.,\u00a0California Torts, Ch. 40,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fraud and Deceit and Other Business Torts<\/span>, \u00a7\u200940.52\u00a0(Matthew Bender)<\/div>\n<div>49\u00a0California Forms of Pleading and Practice, Ch. 565,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Unfair Competition<\/span>, \u00a7\u2009565.103[4][a]\u00a0(Matthew Bender)<\/div>\n<div>Edelson &amp; Kay, eds., Trade Secret Litigation and Protection in California (State Bar of California 2009) Ch. 1<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-7nej40-a94a1f658c7a11971ce5ea7ee46c0b9b hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-63aus0-a44ea9663661f9fe489d31cc781fc8ef\">\n#top .av_textblock_section.av-63aus0-a44ea9663661f9fe489d31cc781fc8ef .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-63aus0-a44ea9663661f9fe489d31cc781fc8ef '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-2352","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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