May 30 2011

How is a trade secret different from a patent?

Category: Business & Economy

Answer:

Trade SecretsIn the US, a trade secret is considered any type confidential business information (formulas, processes, and practices) that provides a competitive advantage in the marketplace for one company. To be considered a trade secret, the information, must not be known by the public and be treated in a manner that protects it from being improperly used or discovered. Unlike other types of intellectual property like patents, trademarks, and copyrights, a trade secret is essentially a conditional form of protection with no formal registration process or documentation necessary to establish it. In most instances, a company will protect its trade secrets through employee, non-disclosure contracts and rules. Some of the most well guarded and famous trade secrets include:

  • Coca-Cola
  • Kentucky Fried Chicken
  • WD-40
  • Krispy Kreme Doughnuts

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