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Trade Secret Civil Code §3426.1

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Trade Secret Civil Code section 3426.1

 

Trade Secret Civil Code section 3426.1

The only information asserted to fall within the concept of trade secret is contained in paragraph 28 of Zuniga's September 25 declaration. It gives the name of a computer program within State Farm for locating documents.

Evidence Code section 1060 provides: "If he or his agent or employee claims the privilege, the owner of a trade secret has a privilege to refuse to disclose the secret, and to prevent another from disclosing it, if the allowance of the privilege will not tend to conceal fraud or otherwise work injustice." (Italics added.)

Evidence Code section 1061, subdivision (b)(1), sets out the appropriate procedure to utilize in litigation where a party claims the trade secret privilege. "The owner of the trade secret shall file a motion for a protective [54 Cal.App.4th 651] order.... The motion shall include an affidavit based upon personal knowledge listing the affiant's qualifications to give an opinion concerning the trade secret at issue, identifying, without revealing, the alleged trade secret and articles which disclose the secret, and presenting evidence that the secret qualifies as a trade secret under either subdivision (d) of Section 3426.1 of the Civil Code or paragraph (9) of subdivision (a) of Section 499c of the Penal Code. [¶] ... [¶] (3) The movant shall, by a preponderance of the evidence, show that the issuance of a protective order is proper." The section also provides broad discretion to the trial court to allow a litigant access to the trade secret information where it is relevant, but otherwise protect it from dissemination. (Evid. Code, § 1061, subd. (b)(4)(C)(i).)

Civil Code section 3426.1, subdivision (d) and Penal Code section 499c, subdivision (a), paragraph (9) are identical in their wording: " 'Trade secret' means information, including a formula, pattern, compilation, program, device, method, technique, or process, that: [¶] (1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and [¶] (2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy."

For purposes of this proceeding, we have no problem assuming that the software program is a trade secret. However, disclosure of this information is also subject to a fraud or injustice exception. (Evid. Code, § 1060.) The facts presented certainly justify disclosure of the information. Further, the information which is disclosed in the Zuniga declaration is so minimal we see no danger that it can be used by another to obtain economic value in competition with State Farm.
State Farm Fire & Casualty Co. v. Superior Court (Taylor) (1997) 54 Cal.App.4th 625 , 62 Cal.Rptr.2d 834 mmmm 

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