Certified Protection Professional (CPP) Practice Exam

What is a significant issue with litigations concerning former employees and trade secrets?

1. The cost of litigations is too low

2. The owner may have to expose the information being protected

3. Litigations are usually resolved quickly

4. Trade secrets are always easy to maintain

The correct answer is: The owner may have to expose the information being protected

The significant issue with litigations concerning former employees and trade secrets is that the owner may have to expose the information being protected. In legal proceedings, it is often necessary to present evidence to support claims or defenses, which can include disclosing sensitive trade secrets. This exposure can jeopardize the very information the owner is trying to protect, potentially allowing competitors to gain access to valuable proprietary knowledge. This situation creates a dilemma for the litigating party, as they must balance the need to prove their case against the risk of undermining their own business interests by exposing confidential information. This concern is not present in situations where litigation costs are manageable, resolutions are speedy, or maintaining trade secrets is straightforward. Each of those aspects, while important in their right, does not equate to the critical issue of the potential exposure of sensitive information that can occur in trade secret disputes.