Trade Secret

A trade secret is a form of intellectual property that allows a business to obtain an economic advantage over its competitors using classified information. A company typically invests money, time and energy into generating this information and it is often vital to the survival of the business. Generally, this is information that is not available to the public.

Trade secret protection can, in principle, extend indefinitely, and in this may offer an advantage over patent protection, which lasts only for a specifically limited period of time. So long as the owner of the trade secret can prove that reasonable efforts have been made to keep the information confidential, the information remains a trade secret and generally remains legally protected. Conversely, trade secret owners who cannot evidence reasonable efforts at protecting confidential information risk losing the trade secret, even if the information is obtained by competitors in an illegal fashion.

Due to its unique nature, trade secrets are not subject to the same protection as most other types of intellectual property, particularly once it has been released into the public domain. Therefore, trade secrets are normally protected through non-compete and non-disclosure contracts with employees in exchange for the opportunity to be employed by the holder of the secret. Violation of the agreement generally carries the possibility of stiff financial penalties. Similar agreements are often signed by other companies with whom the trade secret holder is engaged. Potential remedies for someone who has had their trade secrets stolen include an injunction or an account of profits or award of damages.

If you would like to obtain legal advice on intellectual property then Contact Law can put you in touch with a local specialist intellectual property solicitor free of charge. So if you have any questions or would like our help in finding local IP solicitors please call us on 0800 1777 162 or complete the web-form above.