Court of Appeal Rejects Trade Secrets Claim

The Court of Appeal in Yield Dynamics, Inc. v. Tea Systems Corp. undertook a detailed analysis of Yield's claims for misappropriation of trade secrets, asserted against a former employee. The court upheld the trial court's conclusions that Yield had failed to establish (1) the misappropriated items were properly defined as "trade secrets" because there was no independent economic value associated with their secrecy (2) damages. The court also upheld the trial court's decision in favor of the defense on a number of other claims, including breach of contract, fraud, and unfair competition. This case provides a useful roadmap to litigants attempting to establish trade secrets status.