{"id":2362,"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=2362"},"modified":"2022-05-09T20:15:47","modified_gmt":"2022-05-09T20:15:47","slug":"caci-4412-independent-economic-value-explained","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-4412-independent-economic-value-explained\/","title":{"rendered":"CACI 4412 \u201cIndependent Economic Value\u201d Explained"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv3fj7me-98bfa694cd0fd4e8faf118a611f1e47e\">\n#top .av-special-heading.av-kv3fj7me-98bfa694cd0fd4e8faf118a611f1e47e{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv3fj7me-98bfa694cd0fd4e8faf118a611f1e47e .av-special-heading-tag 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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-kv3fkde1-f03c7e111bf229b482b99121f386e0f5\">\n#top .av_textblock_section.av-kv3fkde1-f03c7e111bf229b482b99121f386e0f5 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv3fkde1-f03c7e111bf229b482b99121f386e0f5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">4412\u00a0\u201cIndependent Economic Value\u201d Explained<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/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\">] has independent economic value if it gives the owner an actual or potential business advantage over others who do not know the [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">e.g., information<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] and who could obtain economic value from its disclosure or use.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">In determining whether [<\/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 secret, you may consider the following:<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">(a)<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">The extent to which [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] obtained or could obtain economic value from the [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">e.g., information<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] in keeping [it\/them] secret;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">(b)<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">The extent to which others could obtain economic value from the [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">e.g., information<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] if [it were\/they were] not secret;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">(c)<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">The amount of time, money, or labor that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] expended in developing the [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">e.g.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">information<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">];<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">(d)<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">The amount of time, money, or labor that [would be\/was] saved by a competitor who used the [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">e.g.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">information<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">];<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[(e)<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Insert other applicable factors<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">].<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]<\/span><\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">The presence or absence of any one or more of these factors is not necessarily determinative. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/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 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 this instruction to further explain element 2 of\u00a0CACI No. 4402,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">\u201cTrade Secret\u201d Defined.<\/span>\u00a0Inapplicable factors may be omitted. <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[I]t is not true that evidence of \u2018some\u2019 helpfulness or usefulness, if credited, would compel a finding of independent economic value. The Restatement defines trade secret as business or technical information \u2018that is sufficiently valuable and secret to afford an actual or potential economic advantage over others.\u2019 (Rest.3d, Unfair Competition, \u00a7\u200939.) The advantage \u2018need not be great,\u2019 but must be \u2018more than trivial.\u2019 (Rest.3d, Unfair Competition, \u00a7\u200939, com. e, p. 430.) Merely stating that information was helpful or useful to another person in carrying out a specific activity, or that information of that type may save someone time, does not compel a factfinder to conclude that the particular information at issue was \u2018sufficiently valuable \u2026 to afford an \u2026 economic advantage over others.\u2019 (Rest.3d, Unfair Competition, \u00a7\u200939.) The factfinder is entitled to expect evidence from which it can form some solid sense of\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">how<\/span>\u00a0useful the information is, e.g.,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">how much<\/span>\u00a0time, money, or labor it would save, or at least that these savings would be \u2018more than trivial.\u2019 (Rest.3d., Unfair Competition, \u00a7\u200939, com. e.)\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Yield Dynamics, Inc. v. TEA Systems Corp.<\/span>\u00a0(2007) 154 Cal.App.4th 547, 564\u2013565 [66 Cal.Rptr.3d 1], original italics.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he focus of the inquiry regarding the independent economic value element is \u2018on whether the information is generally known to or readily ascertainable by business competitors or others to whom the information would have some economic value. [Citations.] Information that is readily ascertainable by a business competitor derives no independent value from not being generally known. [Citation.]\u2019\u2009\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, 62 [171 Cal.Rptr.3d 714].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cMoreover, it seems inherent in the requirement of value, as codified, that it is relevant to ask to\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">whom<\/span>\u00a0the information may be valuable. The statute does not speak of value in the abstract, but of the value that is \u2018[d]eriv[ed] \u2026\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">from not being generally known to the public or to other persons who can obtain economic value<\/span>\u00a0from its disclosure or use \u2026\u2009.\u2019 In other words, the core inquiry is the value to the owner in\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">keeping the information secret<\/span>\u00a0from persons who could\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">exploit it to the relative disadvantage of the original owner.\u201d<\/span>\u00a0(<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Yield Dynamics, Inc., supra,<\/span>\u00a0154 Cal.App.4th at p. 568, original italics, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018[C]ourts are reluctant to protect customer lists to the extent they embody information which is \u201creadily ascertainable\u201d through public sources, such as business directories. \u2026\u2009. On the other hand, where the employer has expended time and effort identifying customers with particular needs or characteristics, courts will prohibit former employees from using this information to capture a share of the market. Such lists are to be distinguished from mere identities and locations of customers where anyone could easily identify the entities as potential customers. \u2026\u2009. As a general principle, the more difficult information is to obtain, and the more time and resources expended by an employer in gathering it, the more likely a court will find such information constitutes a trade secret.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">San Jose Construction, Inc. v. S.B.C.C., Inc.<\/span>\u00a0(2007) 155 Cal.App.4th 1528, 1539\u20131540 [67 Cal.Rptr.3d 54], internal citation 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\">\u201c\u2009\u2018The value of information claimed as a trade secret may be established by direct or circumstantial evidence. Direct evidence relating to the content of the secret and its impact on business operations is clearly relevant. Circumstantial evidence of value is also relevant, including the amount of resources invested by the plaintiff in the production of the information, the precautions taken by the plaintiff to protect the secrecy of the information \u2026\u2009, and the willingness of others to pay for access to the information.\u2019\u2009\u201d (Altavion, Inc., supra, 226 Cal.App.4th at p. 62.) <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>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>49\u00a0California Forms of Pleading and Practice, Ch. 565,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Unfair Competition<\/span>, \u00a7\u00a7\u2009565.103\u2013565.105\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-83z0vu-19d53dbeaa7f90efabbc2f6c606134e8 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-5oxnyi-1b9eeed4cc440c6aea2a7984b9218f53\">\n#top .av_textblock_section.av-5oxnyi-1b9eeed4cc440c6aea2a7984b9218f53 .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5oxnyi-1b9eeed4cc440c6aea2a7984b9218f53 '   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-2362","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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