Final answer:
It is false that a competitor can be stopped from using a trade secret no matter how they obtained it; legal acquisition does not always constitute violation. However, if obtained through improper means, such as industrial espionage, legal actions can be taken to protect trade secrets.
Step-by-step explanation:
The statement that if information is protected as a valid trade secret, a competitor can be stopped from using it no matter who he obtained it from is false. Trade secrets are methods of production or other sensitive business information that are kept confidential to maintain a competitive edge. Trade secret protection does not necessarily stop a competitor from using the information if they obtain it through legal and independent means, such as reverse engineering or accidental disclosure without a breach of confidentiality. However, if the competitor acquires the trade secret through improper means or industrial espionage, then the original owner can seek legal recourse to prevent the use of their trade secret and seek damages.
For example, the formula for Coca-Cola is a well-known trade secret that is not protected by copyright or patent law, yet the company maintains its competitive advantage by keeping it secret. If another entity somehow legally obtained the formula and did not breach any confidential agreements or commit industrial espionage, they might not be stopped from using the information. However, in any case of unauthorized acquisition, such as theft or espionage, the company could sue to prevent the use of their trade secrets.