Certified Protection Professional (CPP) Practice Exam

Under what circumstances might the disclosure of a trade secret be deemed innocent?

1. When the owner is unaware

2. When reasonable precautions to protect confidentiality are lacking

3. When the information is public

4. When the secret is old

The correct answer is: When reasonable precautions to protect confidentiality are lacking

The determination of whether the disclosure of a trade secret can be deemed innocent often hinges on the actions and precautions taken to protect that secret. When reasonable precautions to protect confidentiality are lacking, disclosure might be deemed innocent because it suggests that the owner did not take adequate steps to secure the information in the first place. This lack of precaution indicates that the owner might not expect the trade secret to remain confidential or could be seen as less likely to hold others accountable for accessing that information. In such scenarios, courts may consider the negligence in safeguarding the trade secret as a factor that mitigates culpability in the case of accidental or unwitting disclosure by others. This concept ties back to the standard of care expected from the owner to reasonably secure their proprietary information. If safeguards are not present, it could lead to the conclusion that the owner did not view it as critical or sensitive. In contrast, if the owner is unaware of the disclosure, or if the information is public, the context differs significantly, and the nature of the information changes fundamentally. The age of the secret also plays a role in assessing its relevance and status as a trade secret, although these factors alone do not contribute to an innocent disclosure in the same way that a lack of reasonable precautions does.