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15 N.Y.U. J.L. & Bus. 61 (2018-2019)
Skill or Secret? - The Line between Trade Secrets and Employee General Skills and Knowledge

handle is hein.journals/nyujolbu15 and id is 67 raw text is: 







                    NEW YORK UNIVERSITY

      JOURNAL OF LAW & BUSINESS


VOLUME 15                   FALL 2018                    NUMBER 1




SKILL OR SECRET? - THE LINE BETWEEN TRADE
     SECRETS AND EMPLOYEE GENERAL SKILLS
                      AND KNOWLEDGE


             KURT M. SAUNDERS AND NINA GOLDEN*

                Information is not knowledge.'

        As agents, employees owe a duty of loyalty and confidentiality to their
    current and former employers not to use or disclose proprietary confidential
    information, which can be protected as a trade secret. Nevertheless, former
    employees are free to use general knowledge, skills, and experience acquired
    on the job without incurring liability for trade secret misappropriation. This
    rule is tied to the need to protect competition and employee mobility. How-
    ever, the line between employer trade secrets and employee general knowledge
    and skills acquired during employment is not always clear and the courts
    have not always been consistent in differentiating between the two. This
    article details the results of a study to explore the factors relied upon by
    courts in reaching their determinations.

INTRODUCTION     .........................................        62
     I. THE INTERSECTION OF AGENCY LAW AND TRADE,
        SECRETS LAW ......................................... 65
        A. Agency Relationships ..........................        65
        B. Agent's Fiduciary Duties ......................        66
        C. Scope of Trade Secret Protection ................      70


    * Kurt M. Saunders is Professor of Business Law at California State Uni-
versity, Northridge. Nina Golden is Professor of Business Law at California
State University, Northridge. The authors gratefully acknowledge Business
Honors student, Amy Barnes, David Nazarian College of Business and Eco-
nomics, California State University, Northridge, for her exceptional work as-
sisting us with the research for this project.
    1. FRANK ZAPPA, Packard Goose, onJOE's GAACAE, ACT III (Zappa Records
 1979).

                                 61


Imaged with Permission of N.Y.U. Journal of Law & Business

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