An employee for a beverage company combines the ingredients used in creating the mix.Later he is fired from the company and decides to sell the same mix under a new label to a competing company.What concept might be represented in this action?

Question

Quizplus · Accepted Answer

The employee likely had access to confidential information and trade secrets while working for the beverage company. If the employee signed a nondisclosure agreement, then using that information to create a competing product would be a violation of that agreement. Even without a nondisclosure agreement, the mix ingredients could still be considered a trade secret, and using them to create a competing product would be a violation. This is not a copyright violation, as the ingredients are not protected by copyright law. The idea that "secrets are secrets only until they are known" is incorrect, as trade secrets can be protected even if they are known to some people.

An Employee for a Beverage Company Combines the Ingredients Used