Sep 13 2010

What is a trade secret?

Category: Law

Answer:

A trade secret is any confidential formula, process, or assemblage of information that gives the owner a competitive advantage in their industry. Unlike other forms of intellectual property, trade secrets don’t require registration. As long as the information is kept secret in a way that can reasonably prevent the public or competitors from discovering it, a trade secret will remain valid.

Having a trade secret gives you legal recourse to collect monetary damages or stop its use if someone steals, copies, or uses your trade secret without permission. Using confidentiality agreements and non-disclosure contracts are typically the keys to keeping a trade secret under wraps.

The recipes for Coca-Cola and KFC are examples of the most famous trade secrets.


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