Legal Definitions - proper means

Definition: Proper means refer to any method of discovering trade secrets that does not violate property-protection statutes or standards of commercial ethics. This includes independent invention, reverse engineering, observing the product in public, and studying published literature.

Explanation: Trade secrets are protected in a similar way to private property, but only when they are disclosed or used through improper means. Trade secrets do not have the same absolute monopoly as patented processes, and they will lose their character as private property when the owner divulges them or when they are discovered through proper means. Therefore, it is the use of improper means to produce the trade secret, rather than mere copying or use, which is the basis of liability.

Examples:

• Independent Invention: If a person independently comes up with the same idea or product as another company, they have used proper means to discover the trade secret.
• Reverse Engineering: If a person takes apart a product to understand how it works and then creates a similar product without stealing any confidentialinformation, they have used proper means to discover the trade secret.
• Observing the Product in Public: If a person observes a product being used or sold in public and then creates a similar product without stealing any confidential information, they have used proper means to discover the trade secret.
• Studying Published Literature: If a person studies published literature, such as patents or academic papers, to understand how a product works and then creates a similar product without stealing any confidential information, they have used proper means to discover the trade secret.

These examples illustrate that proper means involve discovering trade secrets without violating any laws or ethical standards. It is important to use proper means to avoid liability for trade secret misappropriation.