Confidential business information automatically becomes protected in the law once the statutory definition in NRS 600A.030 is met. There is no requirement that the parties expressly identify the information as a “trade secret”. Should a dispute arise as to the use of the information, determining whether the information used is protected is a matter of applying the statutory definition as a question of fact.[1]
Courts may consider such factors as: (1) the extent to which the information is ascertainable from sources outside the business and the ease with which it can be obtained; (2) whether the information was confidential or secret or was treated as such by the business; and (3) the employee’s knowledge of the confidential information and whether the same was known by competitors.[2] The business is presumed to make reasonable efforts to maintain the secrecy of information that is marked “Confidential” or “Private” in a reasonably noticeable manner.[3] This presumption may only be overcome by clear and convincing evidence that the owner did not take reasonable efforts to maintain the secrecy of the information.[4]
[1] Frantz.
[2] Id., 116 Nev. at 467, 999 P.2d at 358-59.
[4] Id.
