Restatement (Third) of Unfair Competition

• Author: Joanna H. Kim-Brunetti - Jeffrey K. Riffer - Gregory S. Bombard - Emily J. Friedman
• Pages: 253-256

253

APPENDIX E

Restatement (Third)

of Unfair Competition

Restatement, Third, Unfair Competition, copyright © 1995 by The

American Law Institute. Reproduced with permission. A ll rights

reserved.

§ 39. Definition of Trade Secret

A trade secret is any information that can be used in t he operation

of a business or other enterprise and that is sufficiently valuable and

secret to afford an actual or potential economic advantage over others.

§ 40. Appropriation of Trade Secrets

One is subject to liability for the appropriation of another’s trade

secret if:

(a) the actor acquires by means that are improper under the rule

stated in § 43 information that the actor knows or has reason

to know is the other’s trade secret; or

(b) the actor uses or discloses the other’s trade secret without

the other’s consent and, at the time of the use or disclosure,

(1) the actor knows or has reason to know that the infor-

mation is a trade secret that the actor acquired under

circumstances creating a duty of confidence owed by

the actor to the other under the rule stated in § 41; or

(2) the actor knows or has reason to know that the infor-

mation is a trade secret that the actor acquired by

means that are improper under the rule stated in § 43;

or

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