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California Appellate Court Clarifies Standard for Enjoining "Threatened" Misappropriation of Trade Secrets Notwithstanding Rejection of "Inevitable Disclosure" Rule

July 01, 2008

California’s Fifth District Court of Appeal recently clarified what circumstances are appropriate to enjoin “threatened misappropriation” of trade secrets. See Central Valley General Hospital v. Smith, 162 Cal. App. 4th 501 (5th Dist. 2008). There has been a tension between the plain words of the Uniform Trade Secrets Act, as adopted by California in Civil Code section 3426.2, and California courts’ express rejection of the so-called inevitable disclosure doctrine.

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