Shhhhhhh!! It’s a Trade Secret!

In a cautionary decision from the Delaware Court of Chancery, the court held that “merely password protecting” information does not, by itself, constitute reasonable efforts to maintain confidentiality. In Wayman Fire Protection, Inc. v. Premium Fire & Security, LLC, the court found that relying solely on standard login protections was insufficient to qualify sales data as a trade secret—highlighting the need for companies to take affirmative steps beyond passwords to clearly communicate and safeguard the confidential nature of their information.