True/False
Indicate whether the
statement is true or false.
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1.
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Trade secrets must be registered with the USPTO
to be protected.
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2.
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Trade secrets are governed by federal
law.
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3.
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If information is known outside a company, it
cannot qualify as a trade secret.
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4.
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Nonprofit entities may claim trade secret
protection for their economically valuable information.
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5.
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If confidential information is disclosed to an
employee in the course of employment, the employee is subject to an implied duty to maintain the
information in secret.
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6.
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Employers may require their employees to agree
not to compete against them forever.
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7.
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In order for courts to determine whether matter
qualifies as a trade secret, the information must be disclosed in open court.
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8.
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Theft of trade secrets may constitute criminal
conduct.
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9.
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If properly protected, trade secrets may last
forever.
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10.
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The results of a test that show that a certain
process does not work may qualify as a trade secret.
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Essay
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11.
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Identify the three requirements that information
must satisfy in order to qualify as a trade secret.
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12.
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What laws govern trade
secrets?
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13.
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Discuss the advantages and disadvantages to ABC
Co. in protecting the same information under patent law or trade secrets law.
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14.
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ABC Co. owns several proprietary processes,
which are critical to its survival. Senior company executives know the information as well as a few
vendors who need to know the information to provide services to ABC. Does this information qualify as
a trade secret?
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15.
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XYZ Co. owns several critically valuable
software programs. The programs are available on the company’s intranet, and disks containing
the software programs are typically left in unlocked desk drawers in the company’s supply room.
Discuss whether the computer programs qualify as trade secrets.
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16.
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LMN Co. owns an important, although basic,
computer software program. This program can be easily reverse-engineered by nearly anyone with a
basic understanding of software. Does the material qualify for trade secret status?
Discuss.
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17.
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Coca-Cola Co. has been protecting its famous
Coke recipe as a trade secret for many years. If Lee, a chemist, independently discovers the recipe,
will Lee have any liability for misappropriation of the trade secret?
Discuss.
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18.
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Alex inadvertently faxed a confidential document
to ABC Co., his company’s chief competitor, rather than to one of the company’s other
offices. Alex immediately notified the recipient that the fax had been sent in error and demanded its
return. Does ABC have any liability for obtaining the information or if it uses the information after
Alex’s notification?
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19.
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XYZ Co. would like to ensure that its trade
secrets and employees are fully protected from “poaching.” It would thus like to draft a
written agreement that senior employees would be required to sign. What provisions should the
agreement include? Discuss.
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20.
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Vogue Magazine uses a noncompetition
agreement prohibiting senior fashion editors who leave Vogue from going to work for any
competitor fashion magazine for two years. Discuss whether this clause is
enforceable.
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21.
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A judge has decided that ABC Company’s
noncompetition clause is too restrictive and has decided to modify it so that it is enforceable. The
process of reforming the clause is called __________.
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22.
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Sal has a wonderful idea for a new television
reality show. He has described the show in writing in detail and has sent his description to NBC. May
NBC use the idea without compensating Sal? Discuss.
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23.
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A court is requiring Ted to disclose certain
information about his employer’s hiring practices. Ted had previously signed a nondisclosure
agreement, agreeing not to disclose this information. Must Ted disclose the information?
Discuss.
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24.
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Some courts have issued injunctions prohibiting
individuals from going to work for their former employer’s competitors on the basis that the
employees will undoubtedly disclose information to the new employer. This injunction prevents the
________________ of this information.
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25.
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ABC Co. provides BlackBerrys to its senior
managers. Last week, the company bought new BlackBerrys for the managers. What should ABC do with
regard to the old BlackBerrys?
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26.
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Discuss whether United Airlines can enforce the
following clauses:
• A clause prohibiting all flight attendants from working for any
competitor airline for six months after leaving employment with United.
• A clause
prohibiting all mechanics from working for any transportation company for two years after leaving
employment with United.
• A clause prohibiting its pilots for working as a pilot for any
airline competitor that flies the same routes as United does for one year.
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