Secret formula: N.J. moves to protect trade information

Assembly passes measure that would put Garden State in company of 46 other states with a Uniform Trade Secrets Act.

A measure to protect trade secrets is making its way through the New Jersey Legislature.

The Assembly Tuesday unanimously approved New Jersey joining 46 other states in adopting the Uniform Trade Secrets Act.

Assemblyman Upendra Chivukula said the measure is intended to prevent the improper disclosure of confidential company information.

“A lot of times there’s a lot mobility from one company to the other. Sometimes employees try to get the information,” said Chivukula. “Sometimes employees may give out some information unintentionally and the companies should not lose out on that.”

Companies suffering financial loss from misappropriation of a trade secret would be entitled to recover damages, including possible royalty fees.

The bill is still awaiting action in the New Jersey Senate.