Why Everyone Is Suddenly Talking About “Trade Secrets”
When news broke about Blake Lively’s lawsuit against Justin Baldoni, one legal phrase jumped out: her team is asking the court to label some evidence “Attorney’s Eyes Only” because it allegedly involves trade secrets. That’s not just a fancy Hollywood privacy request. If the court agrees, certain documents can be seen by the lawyers, but not by the parties themselves and definitely not by the public.
Behind the celebrity names is a very real fear many people share: “If I go to court, is my private business information going to end up online for everyone to see?”
From Hollywood headlines to California living rooms
Here in California, the same issues pop up quietly in divorces, business breakups, and influencer or brand disputes. A spouse worries their ex will weaponize customer lists and pricing models. A creator fears that unreleased content, deals, or marketing plans will be dragged into the open.
Under California’s Uniform Trade Secrets Act (Cal. Civ. Code § 3426.1), some of this information can be treated—and protected—as a trade secret if you handle it the right way.
This post walks through, in plain English, what a trade secret is, why it matters in family law and other civil cases, and what you can do to protect yourself before and during litigation. It is general information for California readers, not legal advice for your specific situation.
What Is a Trade Secret (In Normal-People Terms)?
The two-part test in plain English
In California, a “trade secret” is valuable information that gives you a real‑world business edge because other people don’t know it—and you actually treat it like a secret.
California’s Uniform Trade Secrets Act (Cal. Civ. Code § 3426.1) says:
- The information must have independent economic value from not being generally known; and
- You must take reasonable steps to keep it confidential.
Those “reasonable steps” can include passwords, NDAs, limiting who has access, or clearly marking documents as “confidential.” Federal law, through the Defend Trade Secrets Act (18 U.S.C. § 1836 and related sections), uses the same basic idea.
Everyday examples in California life
You don’t have to be Google or a Hollywood studio to have trade secrets.
- Small businesses: client lists, pricing formulas, vendor deals, recipes, internal training manuals.
- Professionals: patient or client lists, treatment protocols, intake systems, referral sources.
- Creatives and influencers: unreleased content, sponsorship rates, marketing calendars, brand contact lists, confidential collaboration agreements.
- Startups and tech companies: source code, algorithms, prototypes, manufacturing methods, product roadmaps.
If it gives you an edge, isn’t public, and you actually treat it as confidential, trade secret law may help protect it.
Where Trade Secrets Show Up in Real Life (Not Just in Silicon Valley)
Trade secrets aren’t just about code on a tech campus somewhere off the 101. California judges see trade secret issues every day in family law, business, and employment cases, all under the same statutes the big players use.
- Divorce involving a business.
For a closely held business, medical or dental practice, restaurant, franchise, or online store, the “secret sauce” can be proprietary pricing, client lists, recipes, or vendor terms. Courts can use protective orders and even “Attorney’s Eyes Only” limits so your ex doesn’t walk away with your business playbook while the court still divides marital property. - Influencer and creative disputes.
Unreleased content, brand deals, and collaboration terms can function as trade secrets if treated as confidential. The Blake Lively vs. Justin Baldoni case is a reminder that privacy and business protection can go hand in hand for California creatives too. - Employees leaving with files.
In a widely reported Google AI case, a California engineer was arrested under the federal Economic Espionage Act (18 U.S.C. §§ 1831–1832) for allegedly stealing AI-related trade secrets, showing that “just emailing myself some documents” can cross into criminal territory, alongside California’s own Penal Code § 499c. - High‑stakes corporate fights.
A California jury hit Phillips 66 with a $604.9 million verdict for trade secret misappropriation, using the same CUTSA remedies—injunctions, damages, and even enhanced damages for willful conduct (Cal. Civ. Code §§ 3426.2–3426.4)—that are available to much smaller businesses.
The same legal tools celebrities and Fortune 500 companies use to shield their information are available to everyday Californians trying to protect a family business, a brand, or a career.
Steps to Protect Your Trade Secrets Before and During a Case
1. Figure out what might be a trade secret
Start by listing anything in your business or brand that gives you an edge because other people don’t know it. Under the California Uniform Trade Secrets Act (Cal. Civ. Code § 3426.1), that can include:
- Client or customer lists
- Pricing formulas or profit margins
- Vendor deals and discounts
- Internal workflows or training methods
- Unreleased content, products, or marketing plans
If losing it would really hurt your business or reputation, put it on your “possible trade secret” list.
2. Lock it down internally
Courts look closely at whether you took “reasonable steps” to keep information secret. Some practical options:
- Use passwords, limited log‑ins, and two‑factor authentication
- Store sensitive files in restricted folders, not on shared drives
- Limit physical access with locks or keycards
- Keep written confidentiality policies in your handbook or operations manual
If your judge looks at your system later, you want them to see that you treated this information as special—not just another file.
3. Use NDAs and confidentiality clauses
Have employees, contractors, business partners, and even family members who work in the business sign:
- Non‑disclosure agreements (NDAs)
- Employment or contractor agreements with strong confidentiality clauses
This creates a paper trail showing you always treated the information as private, not casual office gossip. It also gives your lawyer more tools if someone walks away with your data.
4. Clearly label “confidential” information
For your key documents, actually stamp or watermark them:
- “Confidential”
- “Proprietary”
- “Trade Secret – Do Not Distribute”
Consistent labeling makes it easier to show that anyone who saw the material knew it was sensitive and wasn’t meant to be shared or posted.
5. If litigation is coming, talk to your lawyer early
If you see a divorce, separation, partnership breakup, or employee lawsuit on the horizon, loop in your attorney before documents start flying.
California courts can:
- Issue protective orders under the discovery rules (for example, Code Civ. Proc. §§ 2017.020, 2025.420, 2031.060) to limit who sees what
- Seal records that reveal trade secrets (Cal. Rules of Court 2.550–2.551)
- In appropriate cases, order “Attorney’s Eyes Only” treatment so even the other side personally never sees your most sensitive business information
These tools work best if you’ve already been treating the information as confidential.
What Can Go Wrong If You Ignore Trade Secret Issues
Once it’s out, you can’t put it back
When a trade secret shows up in a public court filing, an email that gets forwarded, or a social media post, you may lose legal protection forever.
Under California law (Cal. Civ. Code § 3426.1), you have to show the information:
- Isn’t generally known, and
- Was subject to reasonable efforts to keep it secret
Once it’s out in the open, a judge or jury can easily say, “If it’s public now, it’s not a trade secret.” You can’t un‑ring that bell.
How leaks hurt your family and your case
In a divorce or business breakup, exposing confidential business information can hurt both sides:
- Competitors may use your recipes, pricing, or client lists
- Revenue can drop, shrinking the “pie” you’re arguing over
- Business valuation goes down, which affects property division and support
- Your settlement leverage may evaporate if the business is suddenly weaker
Instead of arguing over how to grow the business, you may end up fighting over who has to absorb the damage.
Civil lawsuits, criminal charges, and court assumptions
If an employee, partner, or spouse quietly copies confidential files, they can be sued for misappropriation under the California Uniform Trade Secrets Act (Cal. Civ. Code §§ 3426–3426.11).
In more extreme situations:
- Federal prosecutors can file criminal charges under the Economic Espionage Act (18 U.S.C. §§ 1831–1832)
- California can charge theft of trade secrets under Penal Code § 499c
Judges in California try to balance open courts with confidentiality, using tools like protective orders and record sealing (Cal. Rules of Court 2.550–2.551). But if you don’t speak up and ask for protection, the court may assume you don’t treat the information as truly secret—and treat it that way too.
Three Stories That Show How High the Stakes Can Be
Blake Lively, trade secrets, and “Attorney’s Eyes Only”
In the Blake Lively vs. Justin Baldoni dispute, her team is arguing that certain documents are trade secrets and asking the court for an “Attorney’s Eyes Only” order. That would mean some evidence can be seen only by the lawyers, not by Baldoni himself or the public.
In a California divorce, similar tools can protect a business owner’s customer lists, pricing models, or marketing plans under the California Uniform Trade Secrets Act and the discovery rules in the Code of Civil Procedure.
The Google AI engineer and “just copying files”
In another headline case, a Google engineer in California was arrested for allegedly taking AI‑related trade secrets to help companies in China. What might feel like “backing up my work” became federal charges under the Economic Espionage Act (18 U.S.C. §§ 1831–1832).
The lesson: downloading, copying, or forwarding confidential files without permission can cross the line from a civil dispute into a criminal matter.
A $604.9 million wake‑up call
A California jury ordered Phillips 66 to pay $604.9 million for misusing another company’s trade secrets. Under Cal. Civ. Code §§ 3426.3–3426.4, the jury could compensate the victim and punish willful misconduct in a big way.
For many small businesses, a loss like that—on either side—would be a complete game‑changer. Even at a much smaller dollar amount, the same laws apply to family‑owned companies and local professionals.
Same emotions, smaller scale
Now picture something closer to home: a San Gabriel Valley family restaurant going through divorce, or a local influencer splitting from a spouse who helped run their brand. The “secret sauce” recipe, ad rates, or collaboration list may be the most valuable thing they own.
The same themes—trust, betrayal, and survival—show up there too, just without the red‑carpet photos. Trade secret law can be the shield that helps keep their future intact.
Quick Self‑Check: Do You Have Trade Secrets to Protect?
Ask yourself these questions
Take a moment and walk through these questions, thinking about both your main work and any side businesses or brands:
- Do you have customer or client lists, email lists, or brand contacts that a competitor—or an ex—would love to get?
- Do you use special pricing methods, formulas, workflows, or algorithms that you don’t share publicly or with every employee?
- Do you have unreleased content, product plans, sponsorships, or collaboration deals that are still under wraps?
- Have you limited who can see this information with passwords, “need‑to‑know” access, NDAs, or written policies, as Cal. Civ. Code § 3426.1 expects for a “trade secret”?
- Are you in, or expecting, a divorce, separation, business breakup, or key employee departure where this information might be requested in discovery?
What your answers mean
If you’re nodding “yes” to several of these, you may be sitting on trade secrets—even if you’ve always called it “just business info.”
Under California’s Uniform Trade Secrets Act (Cal. Civ. Code §§ 3426–3426.11), those assets can often be shielded in litigation with tools like protective orders and, in appropriate circumstances, “Attorney’s Eyes Only” limits. When you meet with a lawyer, bring this up directly so you can build a strategy before documents start flying.
How Yang Law Offices Can Help Protect Your Business in Family and Civil Disputes
A strategy built around your privacy
When divorce or a family dispute overlaps with your business, Yang Law Offices focuses on two goals at the same time:
- Protecting your legal rights; and
- Protecting what makes your business valuable.
We help you sort through your contracts, customer lists, internal systems, and creative assets to identify what may qualify as a “trade secret” under California’s Uniform Trade Secrets Act (Cal. Civ. Code § 3426.1). From there, we build a plan that takes into account who you are—whether you’re a professional, entrepreneur, influencer, or a high‑profile public figure who simply cannot afford a public document dump.
We regularly work with outside business and IP counsel when needed, so your family law strategy and your company’s legal strategy are aligned, not fighting each other. In court, we can ask for tools like protective orders, “Confidential” and “Attorney’s Eyes Only” designations, and tailored discovery limits under the California Code of Civil Procedure to control who actually sees your sensitive information.
We also negotiate confidentiality agreements and design discovery plans that reduce the risk of leaks, online exposure, or competitive misuse.
Talk to us before documents start flying
The earlier you get advice—ideally before you exchange documents or answer discovery—the more options you have to keep things private and strengthen your negotiating position. Once damaging information is produced without protection, it can be very hard to “un‑ring the bell.”
If you see a separation, divorce, or business breakup on the horizon, reach out to Yang Law Offices for a confidential consultation to talk through your specific situation and your biggest fears about exposure. We’ll walk you through practical next steps so you’re not guessing what to share, what to hold back, and how to protect the business you’ve built.
You Don’t Have to Be a Celebrity for Trade Secrets to Matter
Celebrities like Blake Lively, tech giants like Google, and companies winning massive verdicts are all using the same basic tool: laws that protect information with real value because it’s kept secret.
The same California Uniform Trade Secrets Act that applies in those headline cases (Cal. Civ. Code §§ 3426–3426.11) is available to you, too. Whether it’s your client list, pricing model, app code, or a unique way you run your practice or shop, the law may treat it as a trade secret if it has economic value and you’ve taken real steps to keep it confidential (Cal. Civ. Code § 3426.1).
In divorce, custody, or a business‑related breakup, those secrets can easily end up in subpoenas, emails, and court filings if you don’t plan ahead. California courts can use protective orders, sealed records, and even “Attorney’s Eyes Only” designations to limit who sees sensitive material—not just for celebrities but for regular families and small businesses.
If you feel litigation coming—or you’re already in it—this is the moment to pause and ask yourself, “What in my life is truly confidential, and how am I protecting it?” Yang Law Offices is here to help you answer that question and turn it into a concrete strategy that protects both your family and your livelihood.
Important Disclaimer
General information only
This blog post is for general informational and educational purposes only. It is not legal advice for your specific situation, and you should not rely on it as a substitute for getting your own legal counsel. Trade secret and privacy laws, including the California Uniform Trade Secrets Act (Cal. Civ. Code §§ 3426–3426.11) and related family law and business rules, change over time and can be applied very differently depending on the exact facts.
No attorney–client relationship
Reading this post, commenting on it, or contacting Yang Law Offices because of it does not create an attorney–client relationship with our firm or with Elizabeth Yang. Trade secret, privacy, and confidential business information issues—especially in California divorces, custody matters, and business disputes—are highly fact‑specific. If you are facing these kinds of questions, you should speak directly with a qualified California attorney to get advice tailored to your circumstances.
Select Sources Cited
- California Civil Code § 3426.1 – Definitions under the Uniform Trade Secrets Act – Statutory definition of “trade secret” and related terms.
- California Civil Code §§ 3426–3426.11 – Uniform Trade Secrets Act – California’s core trade secret protections and remedies.
- California Penal Code § 499c – Theft of Trade Secrets – California’s criminal statute on trade secret theft.
- California Code of Civil Procedure § 2017.020 – Limiting the Scope of Discovery – Court authority to limit discovery to protect against unwarranted annoyance, embarrassment, or oppression.
- California Code of Civil Procedure § 2025.420 – Protective Orders for Depositions – Basis for protective orders during depositions.
- California Code of Civil Procedure § 2031.060 – Protective Orders for Document Production – Protective orders related to inspection and production of documents.
- California Rules of Court, Rule 2.550 – Sealed Records – Standards for sealing records in civil cases.
- California Rules of Court, Rule 2.551 – Procedures for Filing Records Under Seal – Procedures for requesting and handling sealed records.
- 18 U.S.C. § 1831 – Economic Espionage – Federal statute criminalizing theft of trade secrets to benefit foreign governments or entities.
- 18 U.S.C. § 1832 – Theft of Trade Secrets – Federal statute covering theft of trade secrets for economic benefit.
- U.S. Department of Justice – Google Engineer Charged with Stealing Trade Secrets Related to Artificial Intelligence – DOJ press release describing the AI‑related trade secret charges against a Google engineer.
- Reuters – Jury Orders Phillips 66 to Pay $605 Million in U.S. Oil Trade Secrets Case – Coverage of the California jury verdict against Phillips 66 in a trade secret dispute.
- Coverage of Blake Lively’s Lawsuit Against Justin Baldoni Over “It Ends With Us” – Entertainment news reporting on Blake Lively’s claims and requests for confidentiality and “Attorney’s Eyes Only” treatment in her lawsuit.
