A trade secret is a form of intellectual property. It is defined as any information, process, formula, technique, or method that is not readily known by the public and provides an economic benefit to its holder. This makes it different from other forms of intellectual property, such as copyrights and trademarks, where the subject matter must be in a easily visible and tangible form, rather than just an idea or piece of information. In order for information to keep its status as a trade secret, the holder must make reasonable efforts to preserve the information’s confidentiality.
?Unlike other types of intellectual property, one does not register their trade secrets with government agency. Instead, trade secret protection is typically secured through means such as contracts, non-disclosure agreements, and non-compete forms. These documents and agreements provide guidelines for people who are exposed to the trade secret that prevent them from sharing that information with anyone who may disseminate the information to the company’s competitors.
Trade secrets last as long as they are kept secret. Therefore, if no one ever discloses them and they are not publicly known, trade secrets can last forever. It is recommended to put safeguards in place not only to protect the trade secret, but also to show the court that you gave a reasonable effort to protect it in the event that another person attempts to violate your protection measure and expose your trade secret.
Information can lose its protected status as trade secret if it becomes public knowledge. If the information is readily accessible to people who could commercially exploit it, it can no longer be claimed as a trade secret.
No, disclosure terminates trade secret protection only if the information becomes generally known or readily ascertainable. Some types of disclosures that will not terminate trade secret protection are:
As long as the person you make the disclosure to is under some duty to not disclose trade secret information to others, and as long as they respect that duty, disclosing trade secret information will not terminate protection.
Disclosure will terminate a trade secret when it makes the information publicly available. It does not matter if the disclosure was intentional or accidental. It does not matter if the trade secret owner took all reasonable precautions to protect the information. What matters is whether or not the information is made generally known. This can occur in several different ways:
Disclosure is not the only way to terminate a trade secret. A trade secret is terminated any time the protected information becomes available to the public. For example:
Trade secrets are important for the operation of many business endeavors, and losing a trade secret can seriously harm a company. If you have questions or concerns regarding the security of your trade secret, you may want to consult with an intellectual property lawyer. They can help you take the appropriate steps needed to protect your trade secret.
Last Modified: 06-24-2018 07:51 PM PDTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.