Texas Trade Secrets

Category: Encryption

Lock it Up! Encrypt Your Cloud Data

In my last post, I discussed whether data maintained in a cloud storage or computing platform can be said to be confidential.  This is important because the Texas Uniform Trade Secrets Act requires the owner of a trade secret to undertake reasonable steps to maintain the confidentiality of the trade secret.  I am not aware of a reported case opinion analyzing how to satisfy that requirement for data stored in the cloud.  Therefore, we do not yet know whether Texas courts will require a user of cloud storage or computing services to take extra precautions to protect the secrecy of their trade secrets.  Nevertheless, because encryption is a relatively easy solution to the problem of cloud service providers having the ability to access or disclose their customers data, it strikes me as a smart business practice to take advantage of that solution. Continue reading

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