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The Court of Appeals for the Tenth Circuit has expressly adopted the D.C.
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In Public Citizen, the term "trade secret" was narrowly defined as "a secret, commercially valuable plan, formula, process, or device that is used for the making, preparing, compounding, or processing of trade commodities and that can be said to be the end product of either innovation or substantial effort." (4) This definition requires that there be a "direct relationship" between the trade secret and the productive process. Circuit's decision in Public Citizen represented a distinct departure from what until then had been almost universally accepted by the courts - that "trade secret" is a broad term extending to virtually any information that provides a competitive advantage. FDA, (3) has adopted a narrow "common law" definition of the term "trade secret" that differs from the broad definition used in the Restatement of Torts. (2) The exemption covers two broad categories of information in federal agency records: (1) trade secrets and (2) information that is (a) commercial or financial, and (b) obtained from a person, and (c) privileged or confidential.įor purposes of Exemption 4, the Court of Appeals for the District of Columbia Circuit in Public Citizen Health Research Group v. The exemption also affords protection to those submitters who are required to furnish commercial or financial information to the government by safeguarding them from the competitive disadvantages that could result from disclosure. Its very existence encourages submitters to voluntarily furnish useful commercial or financial information to the government and it correspondingly provides the government with an assurance that such information will be reliable. Freedom of Information Act Guide, May 2004Įxemption 4 of the FOIA protects "trade secrets and commercial or financial information obtained from a person privileged or confidential." (1) This exemption is intended to protect the interests of both the government and submitters of information.