Coca-Cola develops and distributes carbonated beverages and water products both
ID: 434905 • Letter: C
Question
Coca-Cola develops and distributes carbonated beverages and water products both nationally and internationally. Coca-Cola hires Shontavia Johnson as its patent and trademark attorney and entrusts her with its most valuable trade secrets. Shontavia signs a contract that includes a clause prohibiting her from competing with or becoming employed with companies engaging in similar businesses after her employment with Coca-Cola. After Snontavia has performed her work for Coca-Cola, Shontavia resigns from Coca-Cola’s employ and opens a competing business. In Coca-Cola’s suit against Shontavia, what is the most important factor(s) the court will consider in determining whether Shontavia should be allowed to compete with Coca-Cola?
Explanation / Answer
The law of trade secrets protects the information and business processes that cannot be protected through copyrighted, patented or trademarked against appropriation by a competitor. The most important factor the court will consider in determining whether Shontavia should be allowed to compete with Coca-Cola would be whether it is a violation of trade secret protection act. The state and federal laws protect trade secrets and uniform trade secret law also prohibits misappropriation of trade secret. Here Shontavia Johnson has signed a contract with Coca Cola with a clause that prohibit her from competing with or becoming employed with companies engaging in similar businesses after her employment with Coca-Cola while joining as trade mark attorney. She would know the most important trade secrets of Coca Cola as part of her role that is most valuable for a competitor as well, but the confidentiality agreement never allow her to reveal or use the trade secrets to compete with Coca Cola. If Shontavia use the trade secret of Coca Cola for her business without the authorization, she would be liable to Coca Cola as it would be a breach of duty owed to Coca Cola. If she uses the information from her memory also it will come under misappropriation as per uniform Trade Secrets Act.