Appendix C Restatement (First) of Torts § 757 (1939)

Restatement (First) of Torts
§ 757 (1939)
Restatement, Torts, copyright © 1939 by The American Law Insti-
tute. Reproduced with permission. All rights reserved.
§ 757. Liability for Disclosure or Use of Another’s
Trade Secret—General Principle
One who discloses or uses another’s trade secret, without a privi-
lege to do so, is liable to the other if
(a) he discovered the secret by improper means, or
(b) his disclosure or use constitutes a breach of confidence
reposed in him by the other in disclosing the secret to
him, or
(c) he learned the secret from a third person with notice of
the facts that it was a secret and that the third person dis-
covered it by improper means or that the third person’s
disclosure of it was otherwise a breach of his duty to the
other, or
(d) he learned the secret with notice of the facts that it was a
secret and that its disclosure was made to him by mistake.
a. Rationale. The privilege to compete with others (see § 708, vol.
III) includes a privilege to adopt their business methods, ideas
or processes of manufacture. Were it otherwise, the first person
in the field with a new process or idea would have a monopoly
which would tend to prevent competition. This privilege has

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