Oregon court clarifies when customer information is protectible trade secret

While certain customer data can be protected as a trade secret, basic information such as customer identities and e-mail addresses, without more, doesn't rise to that level, the Oregon Court of Appeals recently ruled. Rather, the employer had to show the information derived economic value from not being generally known and was subject to reasonable efforts to maintain its secrecy.

Facts

Peterson Machinery Co. was engaged in the business of renting and selling heavy machinery in Oregon, Washington, and California. Modern Machinery was one of Peterson's primary competitors in Oregon. Heavy machinery sales is a "niche" market in the state, where only a handful of companies are engaged in the business.

Bryan R. May was a former rental and sales consultant who began working for Peterson in 2006. In October 2017, he accepted a job offer from Modern as the territory manager in Eugene, Oregon. Accordingly, his primary duty was to call on prospective purchasers of heavy machinery in his assigned territory and negotiate potential sales.

In January 2018, Peterson sued May and Modern, alleging, among other things, the misappropriation of trade secrets. Peterson claimed May had access to confidential customer information and market research compiled and stored in the company's customer relations database, SalesLink. The database contained detailed information about Peterson's current and potential customers, including contact information, sales analyses, fleet information and preferences, and sales and rental history.

Petersen claimed May: