Compilation Of Public Data Can Be Trade Secret

A recent 9th Circuit Court of Appeals decision confirmed that data derived from a compilation of publicly available information can constitute a protectable trade secret, particularly when a proprietary process is used to compile or search that information.

The case involved employees of an executive search firm using a collection of information (candidate source lists derived from a program called Searcher) that were taken from his former employer to start a competing firm. On the issue of trade secrets, the court addressed whether defendants conduct was a violation of the Economic Espionage Act (EEA) based on the unauthorized downloading, copying and duplicating of trade secrets in violation of 18 U.S.C. §§ 1832(a)(2) & (a)(4); and unauthorized receipt and possession of stolen trade secrets in violation of 18 U.S.C. § 1832(a)(3) & (a)(4).