Tycoon owns an invaluable ancient Roman coin. Tycoon occasionally allows the coin to be exhibited at museums but generally prefers to leave it sitting locked in a special vault in his basement. The image from the face of the coin is used to advertise the wares of Tycoons textile factory, so it is closely associated with the business by buyers. One evening, Katz breaks into the home while Tycoon is away, busts open the vault and steals the coin. Tycoon contends that Katz has misappropriated a trade secret.

Q: Was the invaluable coin, locked in a vault, a trade secret?

Business keeps a mailing list of all the residents in Businesss area. It is well known that the list is available for a $10 fee at the town hall. Although the list is inexpensive, it is an indispensable part of Businesss marketing operations. Business keeps its copy under lock & key. It also keeps a backup copy in a secure location.

Q: Does the list have the necessary economic value to qualify for trade secret protection?

Soda Jerk sells a popular soft drink, Waterberry. It carefully guards the formula for Waterberry. An employee of Soda Jerk, however, obtains the formula from the safe and sells it to a competitor. When Soda Jerk seeks to recover from the employee and the competitor for misappropriation, they present expert evidence that a team of skilled chemists, working with considerable resources over several months, could have reverse- engineered the formula. Accordingly, they argue, the formula is readily ascertainable and not a trade secret.

Q: Is the formula readily ascertainable?

Dr. Warren, a cancer researcher at the University of Iowa, also works one day a week at the Universitys Cancer Care clinic. He has signed an agreement that, if he leaves the University, he will not practice for two years within 50 miles of the University. He does leave, and takes a job with Iowa Blood and Cancer Care, in Cedar Rapids, which is within 50 miles. He does not take any patients with him. Studies show the area is underserved in that practice area.

Q: Can the University get an injunction against him?

5. Equine Industries develops a new formula for nutritional supplements for horses. Equine takes a lackadaisical approach to keeping this valuable information secret and allows

suppliers, visitors, and others free access to the information. Sure enough, many people throughout history soon know the formula. Equine knows at present it cannot sue anyone for trade secret infringement. Equine did not take the reasonable security measures necessary for protection. But Equine decided to introduce a rigorous security program that stringently limits access to the formula.

Q: Is the formula then a protected trade secret?

Lopez develops a version of the computer programming language, COBOL. Lopez takes a number of security measures: carefully guarding the code, limiting its distribution, avoiding disclosing information that would allow reserve engineering, and requiring employees to sign confidentiality agreements. Parkin and Lopez agree to a joint venture to commercialize Lopez Cobol. Lopez allows Parkin to copy Lopez Cobol onto a personal computer and take it with him to Arizona. The business relationship falters. When Lopez claims trade secret protection in Lopez Cobol, Parkin responds that Lopez has failed to take reasonable security measures, because Lopez allowed Parkin to take a copy to another state.

Q: Has Lopez failed to take reasonable security measures?