What is a Trade Secret and How Can You Protect it?

If you run a successful business, you probably have a few tricks up your sleeve. For the most part, if you are successful, it means you know something your competitors don’t. In this case, it is important for you to keep that information secret. This is where trade secrets come in. Read on to learn about trade secrets, what they are, and how you can protect them.

What Qualifies as a Trade Secret?

For a secret to qualify as a trade secret, it must be secret, have commercial value because of its secrecy, and the owner must take the necessary steps to keep it private. This means your business must benefit from this secret, and having the secret revealed would harm your business. For example, if you have a secret recipe, and your competitor finds it out, they could begin to make the same recipe and sell it for less money, causing your business to take a hit. You may think keeping a trade secret requires some sort of documentation, but while you don’t have to formally register your secret, there are some steps to take in order to ensure your trade secret stays a secret.

How do You Protect a Trade Secret?

The most important way to keep your trade secret a secret is obvious: tell as few people as possible. Limiting the number of people who know the secret will inevitably limit the potential of spreading the secret. If you have to tell someone your secret, you can require that they sign a confidentiality agreement. If they break the confidentiality agreement, that is grounds for bringing legal action against the party who leaks information. Confidentiality agreements can be the key to protecting information of such high value. It is important to note that your trade secret is valid until it is no longer a secret.

If you have questions about intellectual property, or you are wondering how to draft a confidentiality agreement, reach out to our firm today to discuss the process. Additionally, if you have a trade secret that has been leaked, and you wish to take legal action, our firm is here to help. We understand the importance of confidentiality when it comes to business and we want to make sure you are protected.

Contact our Firm

The Law Offices of Richard E. Novak, LLC has over 25 years of experience helping clients through tough times when they need it most. If you need assistance with any intellectual property, traffic violations, or business law matters, our firm is here to help. It is critical that you pick the right attorney who can protect your rights. Contact The Law Offices of Richard E. Novak, LLC for a consultation.