SparkLight, Inc. is a company that manufactures electric lights. It develops a new type of electric lamp called FullBright. One of its competitors releases the same product into the market. SparkLight, Inc. files a lawsuit against the competitor. Which of the following statements is true of this scenario?

Question

Quizplus · Accepted Answer

If FullBright is registered as a trade secret, SparkLight, Inc. should prove that the competitor used the trade secret without its permission. Trade secrets are protected by law only if they are kept secret and not publicly disclosed. If a competitor discovers the trade secret by lawful means, such as independent development or reverse engineering, they cannot be held liable for infringement. SparkLight, Inc. must prove that the competitor gained access to the trade secret through improper means, such as theft or espionage.