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06.17.2009 Your Company’s Database Passwords Are Not Trade Secrets
06.17.2009
You manage a company that operates a website providing data to paid subscribers. The subscribers access your company’s website through individual passwords. Your database is so successful that one of your former clients, which is also in a similar business, offers to buy it. But your company declines the offer.

Around the same time, you fire your marketing director, thinking your company is protected from being injured by that employee because he is subject to non-competition and nondisclosure agreements.

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