Tennessee
How E.I. du Pont de Nemours & Co. v. Christopher applies in Tennessee: state-specific rules, key cases, and bar exam notes for Trade Secrets / Unfair Competition.
Tennessee law, similar to federal law, recognizes trade secrets as information that derives independent economic value from not being generally known or readily ascertainable. The state follows the uniform standards, focusing on the misappropriation of trade secrets through improper means as established in the du Pont case.
Under Tennessee law, a trade secret is defined as any formula, pattern, compilation, program, device, method, technique, or process that is not generally known and has economic value, combined with efforts to maintain its secrecy.
The court upheld claims of trade secret misappropriation where the party demonstrated efforts to maintain secrecy and a clear economic disadvantage as a result of the misappropriation.
The court found that the process of developing a unique technology could qualify as a trade secret as long as it maintained an element of secrecy and economic value.
It was ruled that sharing customer lists can constitute trade secret misappropriation if the lists are not publicly available and reasonable measures to protect them are demonstrated.
Tennessee's approach closely mirrors the federal standard set by the Uniform Trade Secrets Act, which aligns with the du Pont case's emphasis on the necessity of efforts to maintain secrecy. However, Tennessee courts may place a slightly greater emphasis on specific industry practices in determining reasonable efforts to secure trade secrets.
Trade secrets and unfair competition are frequent topics on the Tennessee bar exam, particularly on essays focused on business law and intellectual property.