Frequently Asked Questions - Trade Secrets
| Q: |
What is a trade secret? |
| A: |
A trade secret is a formula, practice, process, design, instrument, pattern, or compilation of information which is not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers. A trade secret is defined by the particular state in which it is being prosecuted. In most states the elements of a trade secret are: (1) is not generally known to the public; (2) confers some sort of economic benefit on its holder (where this benefit must derive specifically from its not being generally known, not just from the value of the information itself); and (3) is the subject of reasonable efforts to maintain its secrecy. |
| Q: |
How is a trade secret protected? |
| A: |
A trade secret is protected through the use of contracts, primarily non-compete and non-disclosure agreements. |
| Q: |
When should I protect my idea with a trade secret instead of a patent? |
| A: |
Typically, one would only use a trade secret instead of a patent if there is no possibility that your idea could be discovered or reverse engineered. Consequently, it is advised that for any work for hire by an employee or independent contractor that you have confidentiality/non-disclosure agreement and non-compete agreements in place. |
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