Employee's Duty of Loyalty to Employer

Question 1

Duty of Loyalty to ER

Answer 1

Can be breached by:

(1) Disclosing trade secrets
(2) Competing with ER
(3) Self-dealing

Question 2

Uniform Trades Secret Act

UTSA

Answer 2

Adopted by IN

Question 3

Trade Secret

Answer 3

(1) Derives INDEPENDENT ECONOMIC VALUE from being kept secret; and
(2) ER has taken REASONABLE MEASURES TO KEEP IT SECRET

Question 4

Information that is NOT a Trade Secret

Answer 4

(1) GENERALLY KNOWN to public/industry
(2) READILY OBTAINABLE through proper means
(3) Acquired by EE through GENERAL EXPERIENCE, KNOWLEDGE, and SKILLS during employment

Question 5

Trade Secrets and Former EEs

Answer 5

Duty extends to former EEs as long as information remains a trade secret

Question 6

Competing with ER

Answer 6

EE breaches duty of loyalty by working for competitor or competing with ER unless ER consents

Question 7

Self-Dealing

Answer 7

While EE is working for ER, EE must pursue ER’s interest, not their own

Question 8

Preparing to Compete

Answer 8

EE allowed to prepare to compete with ER while working for ER (even on ER’s time)

Still cannot neglect the ER’s interests