Brief Fact Summary. Kewanee Oil Co. (Plaintiff) successfully sought an injunction against Bicron Corp. (Defendant) under state trade secret law but was reversed on appeal.
Synopsis of Rule of Law. Federal patent law does not preempt state trade secret protection.
The protection accorded the trade secret holder is against the disclosure or unauthorized use of the trade secret by those to whom the secret has been confided under the express or implied restriction of nondisclosure or nonuse.View Full Point of Law
Issue. Does federal patent law preempt state trade secret protection?
Held. (Burger, C.J.)Â No.Â Federal patent law does not preempt state trade secret protection.Â States may not conflict with the operation of laws, in this area passed by congress, when regulating the area of patents and copyrights.Â However, trade secret law protects items that would not be appropriate subjects for patent protection.Â As Congress has not attended to the area of nonpatentable subject matter, no reason exists that would prevent the state’s freedom to act.Â Reversed.
Dissent. (Douglas, J.)Â Today’s holding conflicts with the earlier rulings of the Court that state law may not prohibit others from copying articles unprotected by a patent because every article not covered by a valid patent is in the public domain.
Discussion. The Court’s interest in keeping the patent law’s goal of promoting invention is reflected in this ruling.Â This case did not overrule earlier rulings limiting state laws preventing copying.Â Generally trade secret laws allow reverse engineering of products in the public domain.