Trade Secrets FAQ
1. What is a Trade Secret?
In broad terms, a trade secret is information which is kept secret and which gives a business an advantage over its competitors. Under the Uniform Trade Secret Act (UTSA) a trade secret must meet the following criteria: i) the information must not be generally known or readily ascertainable through proper means; ii) the information must have “independent economical value due to its secrecy”; and iii) the trade secret holder must use “reasonable measures under the circumstances” to protect the secrecy of the information. “Reasonable measures” may include restricting access to computer containing the trade secret, requiring employees to sign non-disclosure agreements, and stamping trade secret documents “confidential” or “secret.” Examples of trade secrets include customer identities and preferences, vendor agreements, marketing strategies, manufacturing processes, formulas and other competitively valuable information.
2. Can more than one person have trade secret rights to the same information?
Yes, multiple individuals or entities can claim rights to the same trade secret on the same technology if both independently developed that technology and both keep it a secret, as long as the technology is not "generally known."
3. How long does the protection of trade secrets last?
Unlike other types of IP, trade secrets are protected by keeping them secret (as opposed to disclosing them to the public such as with a patent application. Thus, an advantage of trade secrets is that they can be protected for an unlimited amount of time. However, trade secrets also have their disadvantages over other forms of IP protection. Unlike patents and copyrights, which grant a monopoly for a fixed period of time, there is no guaranteed monopoly for trade secrets. If the trade secret is disclosed (even accidentally), reverse engineered, or developed independently by others, the trade secret may cease to exist.
4. How can I protect my trade secrets?
No special registration of government filing is necessary to create trade secrets. The critical requirement for trade secret protection lies in maintaining the secret. Consultation with a knowledgeable IP attorney can help you develop a rigorous and program for protecting you trade secrets.