The Church of True Belief is a religious group founded around a set of closely guarded scriptural materials supposedly handed down to Church’s elders from Church’s deity.
The Church of True Belief is a religious group founded around a set of closely guarded scriptural materials supposedly handed down to Church’s elders from Church’s deity. Some of the adherents’ believe that their values and beliefs were changed by access to the scriptural material and enabled them to become wealthy and they make larger donations to Church accordingly. After a bitter theological dispute, a group of adherents leaves the church to form the House of Absolute Belief. They take with them a copy of Church’s confidential scriptures, which they rely on in gaining adherents and founding the new House. Church sues House for misappropriation of trade secrets. At trial, the issue is whether the scriptures qualify as a trade secret. The evidence indicates that the scriptures had never before been removed from the confines of Church, that both Church and House are tax-exempt non-profit organizations which rely on donations for their funding, and that Church (but not House) rations access to the scriptures in proportion to the size of an adherent’s donation.
Can the scriptures qualify as a trade secret?
Does your answer depend on whether the governing law is the UTSA, the Restatement of Torts, or the Restatement (Third) of Unfair Competition?
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