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Are 5,000 drawings all trade secrets?

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engineer35

Junior Member
What is the name of your state? CA

We have about 5,000 drawings of parts that have "Company Confidential" on them. Some of them are simple washers, springs, and spacers, while others have fancier notches and surfaces. Can the company consider all of these drawings of notes and features as Trade Secrets? How is an employee to know which things are Trade Secrets and which aren't? Is the company responsible for more specifically pointing out which things are secret, as opposed to using the typical blanket statement that the law uses?

If many other departments have access and ocassionally looks at these drawings, such as everyone in marketing, all the technicians, all the manufacturing engineers, all the production leads, some in accounting, and everyone in purchasing, would "Company Confidential" on all these drawings and having all those people sign a Non Disclosure Agreement be sufficient to consider keeping reasonable protection of whatever is considered a Trade Secret?
-Thanks!
 


divgradcurl

Senior Member
Can the company consider all of these drawings of notes and features as Trade Secrets?

Sure, if they really are trade secrets. Here is the definition of a trade secret:

California Civil Code 3426.1

(d) "Trade secret" means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and
(2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

So, anything that is "more valuable" because not everyone knows about it is potentially a trade secret if the company treats it like one.

How is an employee to know which things are Trade Secrets and which aren't?

I think the "company confidential" on the drawings would be a good indication.

Is the company responsible for more specifically pointing out which things are secret, as opposed to using the typical blanket statement that the law uses?

You might want to read these articles:

http://library.findlaw.com/2004/Apr/19/133389.html
http://www.calbar.ca.gov/state/calbar/calbar_sections_generic.jsp?cid=11474&id=7984

If many other departments have access and ocassionally looks at these drawings, such as everyone in marketing, all the technicians, all the manufacturing engineers, all the production leads, some in accounting, and everyone in purchasing, would "Company Confidential" on all these drawings and having all those people sign a Non Disclosure Agreement be sufficient to consider keeping reasonable protection of whatever is considered a Trade Secret?

That would certainly be part of it, but not all of it. Protection of trade secrets means not letting third parties gain access to the secrets, so if the above kept all of the employees from disclosing stuff to thrid parties, then it would likely be sufficient. However, if secrets were disclosed, and questions were raised about your trade secret protection scheme, then it might not be anough.

If you have these questions, maybe its time that you spoke with your corporation's attorney about developing a comprehensive trade secret protection program specific to your company's needs.
 

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