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Is Client and Debtor Information a Trade Secret?

In 2012, the Colorado Court of Appeals addresssed whether a corporation’s client and debtor information is a trade secret.  After analyzing certain factors, the Court’s answer is yes.  To make this particular information a trade secret, the corporation must use “reasonable efforts” to maintain the claimed secrecy of information.  This would include not allowing the information to be known outside the business by using a user name, password and other security measures.  The Court further commented that a wrongful act exists when someone “improperly discloses or acquires” the confidential information.  Actual use or commercial implementation is not necessary for a company to suffer damages.  Therefore, a business would be wise to install simple security measures in order to protect its client and debtor information and protect a possible claim for its wrongful aquisition.