Trade Secret
A trade secret is an intellectual property right on secret or confidential information which may be sold or licensed. It is a practice or a process that no one outside the company knows. A trade secret can be a product designed through proper research and development or a piece of information that can be used to take advantage of competitors. A trade secret is different from a patent as the public knows patents, and a trade secret is known by the company only. Every business must have trade secrets for the information and knowledge to protect them from being used without the owner’s permission.
Characteristics of a Trade Secret
Trade secrets are different according to the jurisdiction and have the following characteristics;
- Not known publicly
- Actively protected and secure
- Provides an economic benefit to the holder
Criteria For a Trade Secret
Normally, you can qualify for a trade secret if your information is;
- Known only to a few persons
- It is subject to the specified steps taken to keep it secret
- Valuable because of confidentiality and secrecy
A business must make reasonable efforts in the United States to get considered for a trade secret. A trade secret may have an economic value or value for a piece of information.
Unfair Practices of a Trade Secret
The following cases may make your trade secret invalid, which will be classified as violating the trade secret protection.
- An unauthorized acquisition
- Use of secret information
- Disclosure of such information for commercial practices
Different Kinds of Trade Secrets
A trade secret may have various forms, as listed below;
- Proprietary
- Pattern
- Design
- Recipe
- Formula
- Instrument
- Method
- Practice
- Strategy
A trade secret is typically divided into two different kinds;
- Technical information
- Commercial information
Let’s discuss these kinds in detail.
Technical Information
Technical information involves pharmaceutical test data, computer program drawings, technical designs, programs, and technical artwork.
Commercial Information
Commercial information includes distribution methods, a list of suppliers, details of customers, advertising strategies, plans, and personal goals and objectives of the company.
There are other kinds of information that can be protected through trade secrets in Chicago, like financial information, secret recipes, source codes, financial formulas, and much more.
Ways to Protect a Trade Secret
Companies and organizations must take preventive and precautionary measures to protect their trade secrets to avoid action and misuse. We may categorize it as below;
- NCA Non-Compete Agreement – employers can ask their contractors, employees, and consultants to sign an agreement. This agreement will prevent them from any competition even if they end their services with the company.
- NDA Non-Disclosure Agreement – in this agreement, employees and business partners enter into an agreed-disclosure agreement. This will prevent them from disclosing confidential and secret information about the company or organization.
- Secure your IT system carefully
- Have control over the accessibility of important, secret, and confidential documents.
Steps by Step Guide to Protect Your Trade Secrets
It is not one time process to protect your trade secrets. It is an ongoing process, and you must protect secret information and knowledge from time to time. The below guide will make you able to protect your trade secrets easily.
- First, identify the trade secrets of your company.
- Secure them yourself by applying restrictions for employees, visitors, and consultants.
- Provide them security by limiting computer access.
- Monitor emails and remote access and keep event logs.
- Get information about relevant threats.
- Train your employees, contractors, and executives.
- Hire someone to look after the matter carefully and work as per plan.
- Make a plan to respond to the events and threats to prevent your business from being damaged.
There are a lot of trade secret attorneys in Chicago who provide consultancy regarding your business’s protection.
Trade Secret Real Life Examples
There are many tangible and intangible trade secret examples in the real world. Search algorithms by Google are intellectual property for their codes. This is updated from time to time to improve their operations and services. Coca-Cola has a secret formula and recipe that is an example of a trade secret case.
Final Words
Trade secrets are key components of intellectual property portfolios. They will help businesses protect and secure their business formulas, strategies, and confidential information. This will prevent others from taking any competitive edge by using business information, know-how, and other key business details. Sherinian Law is the best option for protecting your trademark in Chicago. If you need any assistance, you may seek help from top trademark lawyers in Chicago.