Skill or Secret? -- The Line Between Trade Secrets and Employee General Skills and Knowledge

Abstract

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. However, 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.

Keywords: trade secrets, intellectual property, employee, employment law, business

JEL Classification: K11, K12, K22, K31