Generally, a trade secret may be any formula, pattern, physical device, idea, process or compilation of information that both:
(a) provides the owner of the information with a competitive advantage in the marketplace, and
(b) is kept and safeguarded in a way that is expected to prevent the public or competitors from learning about it.
Some examples of potential trade secrets :
the formula Coca-Cola Classic,
a restaurant's secret recipe,
a new invention for which a patent application has not yet been filed,
marketing strategies,
manufacturing techniques and computer algorithms, or
customer or client lists.
Unlike other forms of intellectual property such as patents, copyrights and trademarks, trade secrecy is basically a do-it-yourself form of protection. There is no requirement of registration in order to secure a trade secret; it is simply kept confidential. Also, trade secret protection lasts for as long as the secret is kept confidential.
Once a trade secret is made available to the public, trade secret protection ends. Therefore, once a copyright or a patent based upon secret information is granted, protection under trade secret law ENDS. Therefore, one should NOT seek patent protection or copyright protection for any matter that is more valuable kept as a trade secret.
How are trade secrets used?
Trade secrets protect valuable information that is not suited for protection under other forms of intellectual property law, such as Colonel Sanders' secret blend of herbs and spices in KFC's Original Recipe.
Trade secrets may also:
1. protect ideas that offer a business a competitive advantage, thereby enabling an innovator to get a jump start on the competition;
2. keep competitors from learning of product development and from discovering its functional or technical attributes -- for example, how a new software program functions.
