Which characteristic is required for protection of a trade secret under California law?

Which characteristic is required for protection of a trade secret under California law?

• A. It must be patented
• B. It derives independent economic value from not being generally known
• C. It must be published
• D. It must be publicly available

Answer: (B)

In California, protection for a trade secret hinges on secrecy and value. The essential characteristic is that the information derives independent economic value from not being generally known. This means the secret earns you a competitive advantage precisely because others don’t know it, and you take reasonable steps to keep it confidential. If the information were patented, published, or publicly available, it would no longer be a trade secret because the secrecy that gives it value has been lost.

In California, protection for a trade secret hinges on secrecy and value. The essential characteristic is that the information derives independent economic value from not being generally known. This means the secret earns you a competitive advantage precisely because others don’t know it, and you take reasonable steps to keep it confidential. If the information were patented, published, or publicly available, it would no longer be a trade secret because the secrecy that gives it value has been lost.