Koach's Sales Corp. V. Cra-Mar Video Center, Inc., 478 N.E.2d110

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  • Topic: Sales, Secrecy, Computer
  • Pages : 2 (393 words )
  • Download(s) : 805
  • Published : November 2, 2011
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Facts:
CRA-MAR Video Center, Inc. sells electronic equipment and video cassettes, as does its competitor, Koach's Sales Corporation. Both CRA-MAR and Koach's purchased computers from Radio Shack. CRA-MAR used the computer it purchased to store customers lists, movie lists, personnel files, and financial records. Because the computer was new to CRA-MAR, Randlall Youts, Radio Shack's salesman and programmer, agreed to modify CRA-MAR's programs when needed, including the customer list program. At one point, CRA-MAR decided to send a mailing to everyone on its customer list. The computer was unable to perform the fuctionm so Youts took the disks containing the customer list to the Radio Shack store to work on the program. Somehow Koach's came into possession of CRA-MAR's customer lists and sent advertising mailing to the parties on the lists. When CRA-MAR discovered this fact, it sued Koach's, seeking an injuction against any further use of its customer lists. Analysis:

Is a customer list a trade secret that can be protected from misappropriation Rule of law:
The rule of law in this case is Trade Secret. "Trade secret" means information, including a formula, pattern, compliation,program, device, or process that: (1) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use. and (2) is the subject efforts that are reasonable under the circumstances to maintain it's secrecy. Court Ruling:

The trial court determined that the plaintiff's customer list of about five thousand customers comprises information that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means, by other persons who can obtain economic value from its disclosure or use and is the subject of efforts that are reasonable under the circumstances...
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