Trade Secret FAQs
What is a trade secret?
Any non-public information that is used by a commercial entity to provide that entity with a competitive or economic advantage can be a trade secret.
How do I create a trade secret?
A trade secret must be non-public information protected by reasonable steps to limit its distribution and maintain the information’s secrecy within and outside of the entity that owns the trade secret. Reasonable steps may include at least the following:
- Non-Disclosure agreements between the company and its employees
- Document protection and procedure policies
- Employee training
- Monitoring and maintenance
What types of information can be a trade secret?
A trade secret can be any non-public information, such as a formula, practice, process, design, customer list, method or technique for manufacturing that is not generally known and cannot be easily derived from public information.
Do I need to register a trade secret?
No, there is no trade secret registry. However, it is recommended that trade secret owners create a written description of the trade secret and secure it in a safe place that will prevent its disclosure.
How long does a trade secret last?
Trade secret protection does not expire and lasts as long as the information remains a secret.
Can I sell or license my trade secret?
Yes. Trade secrets are personal property that can be sold, licensed or transferred.
What are remedies available if a trade secret is stolen or misappropriated?
There are different remedies available under common law, state law and federal law depending on the specific facts and circumstances. However, it is usually most important for the trade secret owner to seek an injunction—a court order preventing the other party from using or disclosing the trade secret— in order to limit any improper disclosure and damages that may result from a disclosure.
Are there laws that protect my trade secret?
Trade secrets are protected through secrecy and procedures that protect such secrecy. However, there are state and federal laws that provide remedies for stolen or misappropriated trade secrets if certain conditions exist. Accordingly, it is a best practice to investigate the remedies in your specific jurisdiction to see what conditions must be met to avail yourself of those protections.
Can someone independently discover the same trade secret?
Yes. Another unrelated party may independently arrive at the same trade secret and it is possible for two different entities to have nearly identical trade secrets because both of them maintained it as a secret and there is no public disclosure.
Additional information on trade secrets is available at the USPTO website.
The above is for informational purposes only and is not legal advice. Neither the availability, operation, transmission, receipt nor use of this information is intended to create, or constitute formation of an attorney-client relationship or any other special relationship or privilege. You should not rely upon this information for any purpose without seeking legal advice from a licensed attorney.