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Trade Secrets
Protection of Confidential Information
A trade secret is confidential information that is of independent economic value from not being generally known or readily ascertainable. Trade secrets may include formulas, compilations, devices, technical know-how, marketing ideas, financial information, and customer/supplier information. Trade secrets do not include information that competitors may obtain through proper means, such as reverse engineering a commercially available product. A classic example of a trade secret is the formula for Coca-Cola.
Through trade secret law, confidential and/or proprietary business information that is not patented may still be protected. The Uniform Trade Secrets Act, enacted by most states, protects information that derives independent economic value from being generally unknown information. In contrast to patents, trade secrets may extend indefinitely, so long as they remain confidential.
The owner of a trade secret must continuously engage in conduct to preserve trade secrets. Thus, a trade secret generally should be disclosed only to employees requiring the trade secret to perform their jobs. Persons improperly acquiring trade secrets may be barred or enjoined from using the information. In addition, damages for lost profits or the value of the improperly acquired trade secret may be available.
The Business Value of a Trade Secret
Trade secrets can be significant intellectual property assets – for some businesses, the most important assets of the company. They can provide significant competitive advantages for an unlimited period, if identified in a timely manner and properly protected. Accordingly, a comprehensive program for identifying, maintaining and enforcing trade secrets can be an essential component to your company’s business plan.
How We Can Help
Maintaining confidential information as a trade secret may or may not be a companys best option for protecting the information. The answer for your company depends on many individual factors, including: the potential of others to reverse engineer the information; the ability to restrict access to the information; and the ability to manage the use of the information. We can help you determine if keeping information a trade secret is best for your company. When maintaining information as a trade secret is best, we can help by: developing and implementing corporate trade secret protection programs; identifying trade secrets; preparing employment and other confidentiality agreements; and pre-litigation counseling. Conversely, when the protections of patent law will better meet your needs, we can guide you through that process as well.
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