The Doctrine Of Inevitable Disclosure Of Trade Secrets

As the country that has the most advanced law of trade secrets, U.S.A. has built up almost perfect legal system for the protecting of trade secrets. Against this background, the doctrine of inevitable disclosure of trade secrets is one of the most famous doctrines in American trade secrets law. Although this doctrine has been applied very abroad in U.S A just from its birth in 1902, but it has also brought huge controversies to theory and judicial decisions. Only a few years ago, some scholars introduced the doctrine to China, but the production of research about the doctrine is very little. During the new times of knowledge economy, technology has been developed rapidly and the mobility of people has grown. Therefore, it is very important to study and research the doctrine.Before discussing the doctrine, we must define trade secret in American law. In American law, trade secret is a kind of information, which is secret, valuable, novel and creative. And the doctrine is usable tool that can protect this kind of information properly by the means of enjoining the employees who have learnt the trade secrets from their former employers during the progress of working from taking a similar new job from the competitors of former employers by applying a reb'ef of injunction, because of the employees' inevitable disclosure of this kind of information in the course of working in the new position. The doctrine was created by common law over one hundred years ago, but courts still have different opinion in it. Even if the case, PepsiCo' which has been treated as the rebirth of the doctrine restated the doctrine under the Uniform Trade Secrets Act, people are still debating about it. As the case law showing, the plaintiff who wants to win the suit must prove three factors: (l)He does have the trade secrets, and(2)the employee know the trade secrets, and (3)the employee's new job will lead him to disclose the trade secrets inevitably. However, in fact, courts have different standard of judging these factors.Because of several reasons, the doctrine has been applied increasingly. While this kind of tendency of over applying the doctrine will lead to some negative effects: On micro aspect, the employees are worried about being sued when changing a job and they are prohibited to take a new job, which is inside his speciality that makes them very hard to live a life. On macro aspect, over applying the doctrine will block the mobility ofemployees, impede the dissemination of knowledge and bring negative effect on developing of districtwide economy. ,Fortunately, some courts have realized these negative effects which are brought by over applying the doctrine. Therefore, they limit the application of the doctrine, in order to protect trade secrets only when this kind of information will really be disclosure. This limitation will ultimately give us some benefits: To build up circumstances of fair competition and to encourage innovation and invention. The doctrine also enlightens us on below aspects:(l)The plaintiff should be demanded to prove inevitable disclosure in applying for enforcing of the non-compete covenant; (2)Take notice of the function of "Eliminating Dangers" in enjoining threatened misappropriation;(3)Pay more attention to the balancing of benefits in law of trade secrets in legislation and judicature.