In The Courts: Federal Courts Rule That Social Networking Can Contain Trade Secrets

In a move, that is interesting to say the least, a Colorado Federal Court and a California Federal Court have ruled that social networking accounts, and lists can contain trade secrets.

In the Colorado case an employee of a nightclub was responsible for maintaining the nightclub’s MySpace page. The nightclub had several thousand friends on MySpace and was often used to promote specials, and performances at the club. That was all well and good until the employee left that club to work for a competing night club in the same town.

Once the employee started working for the competitor he started to use the same MySpace friends list to market the new club to the old club’s patrons.  In that case Christou v Beatport the judge in Colorado ordered that the MySpace list of friends was protected by the Colorado Uniform Trade Secrets Act.

JDspura.com reported:
The court held that, using the same logic for protection of customer lists, a friends list could be entitled to protection if it meets the traditional tests under which customer lists can constitute trade secrets. The court noted that the list could not readily be compiled from public sources, and that the plaintiff had limited access to the employer’s login and password information.

More after the break
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