Minnesota's adult-use cannabis industry is finally budding. Growers have devoted substantial time and resources to their cultivation process. Sellers have invested heavily in market research. This information can give cannabis business owners an edge in a highly competitive market. The law refers to such unique information as trade secrets.
Trade secret theft is a problem in many industries. When it happens, a business can go to court to stop a competitor from using the confidential information and may be able to recover damages. But to win, the business must show it took reasonable steps to protect the information.
In Minnesota, a "trade secret" is defined by statute as a formula, pattern, compilation, program, device, method, technique, or process 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 to maintain its secrecy.
But what does it mean for the cannabis business? Minnesota courts have not weighed in yet. But states with similar trade secret laws and flowering medical and adult-use cannabis industries offer some hints.
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