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What makes information a trade secret
The federal definition requires reasonable secrecy measures and independent economic value from not being generally known or readily ascertainable by proper means. Public marketing material does not become secret because the contract says confidential. Lawful independent development and reverse engineering are not automatically misappropriation.
In a fictional training business, a manager receives every manual, customer record and pricing file. Separate public material, genuinely claimed secrets and personal data. Limit access to what the role needs and plan how accounts and retained copies are handled on exit. These are business measures relevant to secrecy, not proof that every file is legally protected.
Confidentiality cannot erase the specified reporting protection
The law protects specified confidential disclosures to government officials or an attorney solely to report or investigate suspected legal violations, and sealed court filings under its conditions. Covered employer agreements about secrets or confidential information need the immunity notice or a qualifying policy reference.
For this provision, employee includes individual contractors and consultants. The notice rule applies to agreements entered into or updated after May 11, 2016. Missing it limits the specified exemplary-damages and attorney-fee remedies against the affected employee; it does not automatically void the agreement or remove every remedy. Not every company-to-company franchise agreement is covered.
Scope
- No file is declared a trade secret here. State law, remedies and personal-data/cross-border privacy obligations remain separate.
Next step
Decide which actual information each recipient needs, how access ends and whether the recipient’s agreement falls within the notice rule.
Sources & review notes
U.S. House of Representatives, Office of the Law Revision Counsel
Passage, dates and research notes
primary · §1839(3), (5), (6)
reasonable measures
Read complete definitions. Page currency through Public Law 119-124 (October 15, 2026). Information needs both reasonable secrecy measures and independent economic value from secrecy; independent derivation and lawful reverse engineering are not improper means.
U.S. House of Representatives, Office of the Law Revision Counsel
Passage, dates and research notes
primary · §1833(b)(1)–(4)
contractor or consultant
Read complete section. Page currency through Public Law 119-120 (October 7, 2026). Notice applies to contracts governing trade secrets/confidential information with employees including individual contractors/consultants, entered into or updated after May 11, 2016. Missing notice limits specified exemplary damages/attorney fees, not every remedy or all contract validity.
Detailed rule records (1)
18 USC §1839 requires reasonable secrecy measures and independent economic value from secrecy for trade-secret status. Section1833 protects specified confidential law-reporting disclosures and requires covered employer agreements to give the statutory immunity notice, with specified remedy consequences if omitted.
18 USC §1839: trade-secret definitions 18 USC §1833: exceptions and whistleblower immunity noticeKeep this reading in your learning library.
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