Article in April Communiqué – an official publication of the Clark County Bar Association

Convenient data storage devices and other means of transferring information can be a nightmare for employers hoping to protect trade secrets. Potentially misappropriated trade secrets can include nearly any “information . . . that . . . [d]erives independent economic value . . . from not being generally known to, and not being readily ascertainable . . . by the public or any other persons who can obtain commercial or economic value from its disclosure or use.” NRS 600A.030(5).

The failure to take steps to protect sensitive information may result in the loss of trade secret protection, which may compromise competiveness and innovation. In Frantz v. Johnson, the Nevada Supreme Court made it clear that, in determining whether information is entitled to trade secret protection, courts will consider “the extent and manner in which the employer guarded the secrecy of the information.” 116 Nev. 455, 999 P.2d 351, 358–59 (2000).

Restrictive covenants between employers and employees, even at-will employees, provide a simple way for employers to help protect trade secrets.