Trade Secrets

TRADE SECRETS

A trade secret is confidential business information which provides a company a competitive edge. Trade secrets may be manufacturing secrets and commercial secrets.

A person or company protects a trade secret by keeping it a secret. A trade secret lasts as long as it is maintained as a secret, which may be indefinitely. In contrast, most patents are only valid for 20 years.

If you are the owner of a trade secret you must protect it from disclosure and maintain its confidential nature in order for it to be enforceable as a trade secret. Trade secrets are not subject to patent or trademark protection but can be enforced as valuable property rights by the courts.

The subject matter of trade secrets is usually defined in broad terms and includes any information that derives independent economic value from not being generally known or readily ascertainable, such as a formula, pattern, compilation, method, technique, or process. For example, the courts have found "trade secrets" to be machining processes, blueprints, and stock-picking formulae, customer lists, pricing information, and non-public financial data.

Unfair practices with respect to a trade secret may include industrial or commercial espionage, breach of contract, and breach of confidence.