Asked by Jonathan Berger on Jun 12, 2024
Verified
Computer students who watched their teachers go out on strike were amazed when they heard about the difficult logistics required in such an operation. Two students spent two nights and two days developing an app for organizing a strike and picket line. It included such variables as legal requirements, number of sites, number of picketers, communications network, shifts, media contacts, etc. The students called their app "Picket Progress." The students took their package - code and manual - to a computer developer/publisher, Mr. Lacs, to discuss the feasibility of marketing the app. Lacs said it was feasible. However, negotiations, which had lasted over a two week period, broke down when Lacs rejected the students' terms in their licensing agreement. Three months later, the students learned that Lacs developed and published an app called "Picketers' Path" based on their ideas, with a manual that they recognized as theirs. On these facts, which of the following is true?
A) With regard to the app, Lacs could not be sued for misuse of a trade secret because the students only told him their idea and ideas cannot be protected by trade secret law.
B) Because there was no non-disclosure agreement signed by Lacs, he cannot be sued for misuse of a trade secret.
C) The students' manual was not protected by copyright, because they had not yet applied for protection under the Copyright Act.
D) The students could sue for breach of trade secret law if they can show it was apparent in the circumstances that Lacs was being trusted with confidential information.
E) The students cannot protect the app under the law of trade secrets because all the information it contained could be obtained by others, e.g., the law from the library, the necessities of picketers from observation or unions, etc.
Trade Secret
Proprietary information owned by a business that provides a competitive advantage and is kept confidential.
Non-Disclosure Agreement
A legal contract establishing a confidential relationship, wherein parties agree not to disclose certain information.
Copyright Act
Legislation that protects the rights of creators by granting them exclusive rights to use, distribute, and reproduce their works for a certain period.
- Acquire knowledge about the critical nature and application of trade secret regulations for the protection of proprietary information.
- Comprehend the significance of contracts and agreements in ensuring the protection of intellectual property.
Verified Answer
MB
Marquitta Buxton
Jun 18, 2024
Final Answer :
D
Explanation :
The students could potentially sue for breach of trade secret law if they can demonstrate that the circumstances implied Lacs was entrusted with confidential information, even without a formal non-disclosure agreement. Trade secret protection can apply to information that is not generally known and is subject to reasonable efforts to maintain its secrecy.
Learning Objectives
- Acquire knowledge about the critical nature and application of trade secret regulations for the protection of proprietary information.
- Comprehend the significance of contracts and agreements in ensuring the protection of intellectual property.