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Italy and Spain refused to participateoStill patent holders are often forced to litigate and file in many nationsTrade SecretsoCoca Cola has held secret the formula for Coke for over 100 years—a patent would not provide such lengthy protectionoMost trade secret lawsuits are common lawactions of stealing and using secretsoProsecutors can also press criminal chargesoProtection in other countries is difficultoInformation is a trade secretif:It is not known by competitionBusiness would lose advantageif competition were to obtain itOwner has taken reasonable stepsto protect the secret from disclosureBohnsack v Varco, LPoFactsBohnsack is an engineerHe invented the “Pit Bull” machine to make more efficient the process of cleaning drilling fluids used in drilling oil wellsVarco is a company that cleans drilling fluidsSecrecy Agreement: negotiated over the possibility that Varco would manufacture Pit BullTalks fell apartVarco’s lawyer had filed a patent application for Pit bull, claiming Varco invented itBohnsack sued VarcoJury awarded $600,000 for misappropriation of trade secretsElemetns of misappropriation of trade secrets:
o1. Existence of a trade secreto2. Breach of a confidential relationship or improper discovery of trade secreto3. Use of trade secreto4. DamagesVacro said it did not “use” trade secretRestatement test used by the court:Any exploitation of trade secret is likely to result in injury to trade secret owner or enrichment to the defendant is a “use”oUse is broadly definedVacro exploited Bohnsack’s idea for the Pit Bull—would likely to result in injury to BohnsackFiling a patent application by Vacro would lower the market value of Bohnsack’s inventionAlso making it less likely that Bohnsack would sell his invention to Vacro’s competitors would enrich VarcoNo precise damages are necessary—final terms of Vacro-Bohnsack agreement to prove value of Pit BullJudgment Affirmed: Misappropriation of trade secrets by VacroEconomic EspionageoUsually trade secrets based on common law and enforced by litigation claiming misappropriation; violations of a secret; or violation of secrecy agreementoEconomic Espionage Act of 1996 concerns theft of commercial trade secretWhoever, with intent to convert a trade secret, that is related toor included in a product that is produced for or placed in interstate or foreign commerce to the economic benefit of anyone other than the owner thereof, and intending or knowing that the offense will injure any owner of that trade secret,” is subject to prosecutionoPunishment for a person can be up to 10 years in prisonoFirms may face fines up to $5 millionUnited States v YangoFactsLee, native of Taiwan; worked in research for Avery (adhesive manufacturer)Lee visited Taiwan; approached by Yang and his daughter about