![]() However, there are certain criteria that must be met to have a “trade secret.” Generally, a trade secret must be information that (a) is not known or readily ascertained by competitors, (b) has economic value from being kept secret, and (c) is subject to reasonable secrecy. This is because trade secrets can cover almost any valuable information, do not require an application or any divulging of the information to the public, and can last forever (as long as it remains a secret). Trade secrets are a valuable form of intellectual property for companies. Let’s take a look at what exactly trade secrets are and how IP attorneys can help companies protect them. As we will see, trade secrets are a lot like toothpaste – once they’re out, they (often) can’t be put back in. While the trade secret thief received a harsh prison sentence and fine, the companies whose trade secrets were stolen lost the valuable secrecy of their information. In May 2022, a former Coca-Cola chemist received a 14-year prison sentence for stealing trade secrets. The difficulties in protecting trade secrets are exemplified by a re cent jury verdict from a federal trial court. “Colgate Toothpaste” by rjg329 is licensed under CC BY-NC-SA 2.0. A downside to trade secrets however, is that they are sometimes difficult to protect. Almost every company uses trade secrets to protect information. Some of the biggest IP litigation cases in recent years have involved trade secrets. As we will see, companies are increasingly turning to trade secrets as a means of protecting their intellectual property. ![]() And, trade secrets can sometimes be more useful – and valuable – than patents. However, trade secrets are also a type of intellectual property that can protect technology. However, keep in mind that to prevail in these legal claims, courts must find that the business had reasonable measures in place protecting trade secrets, to begin with.When most law students think of protecting an invention or technology, they immediately jump to patents, which is a type of IP granted by the government to protect inventions. In any of these cases, perpetrators can be liable for damages stemming from these violations. They might hack into digital files, misrepresent themselves or take protected information to use as leverage for a new job. Unfortunately, there are people who will violate even the most aggressive protections. These parties can help business owners make informed decisions on securing their trade secrets adequately. To do this, business owners may want to consult: If you have trade secrets to protect, putting these measures in place as soon as possible is crucial. Building a solid framework around proprietary information And when businesses have these in place, any attempts to violate or circumvent them can trigger legal action. These are just some of the relatively simple, cost-effective measures that can keep trade secrets private. Requiring workers with access to attend training for how to handle trade secrets.Restricting public access to the business.Monitoring access and use of protected data.Clearly labeling and identifying confidential information.Changing login credentials upon employee dismissal.Having employees with access sign confidentiality or non-compete agreements.Physically locking file cabinets containing trade secret information.Keeping sensitive information in password-protected digital files.That said, some examples of measures that courts typically consider sufficiently protective can include: Some approaches are more effective than others, and courts may not consider certain efforts sufficient to provide adequate protection. ![]() There are several ways businesses can protect trade secrets. However, the phrase “reasonable measures” can seem vague and subjective, creating confusion and vulnerabilities in a business’s intellectual property. Protecting trade secrets requires parties to take reasonable measures to keep the information in question private.
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