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Trade secrets encompass both technical information, such as information concerning manufacturing processes, pharmaceutical test data, designs and drawings of computer programs, and commercial information, such as distribution methods, list of suppliers and clients, and advertising strategies.
Which 3 elements are required to have a trade secret?
Below we discuss the three elements of a trade secret, listed above. (1) The information is secret. (2) The information confers a competitive advantage. (3) The information is subject to reasonable efforts to keep it secret.
Are trade secrets legal?
Since no government entity monitors trade secrets, enforcement of trade secrets is largely a matter of policing by private companies that can afford to do so. However, in the case of intentional theft of trade secrets, the federal Economic Espionage Act of 1996 and some state laws provide criminal penalties.
What can trade secrets include?
Information that can be kept as a trade secret includes formulas, patterns, compilations, programs, devices, methods, techniques, or processes. Some examples of trade secrets include customer lists and manufacturing processes. The economic value of the information can be actual or potential.
What are the most famous trade secrets?
But to better understand how you can leverage trade secrets for your business, lets look at some notable examples of trade secrets from different industries. Googles Search Algorithm. Coca-Colas Coke Syrup Formula. KFCs Original Recipe. McDonalds Big Mac Special Sauce. WD-40s Multi-use Product Formula. Patents.
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Examples of trade secrets can include engineering information; methods, processes, and know-how; tolerances and formulas; business and financial information; computer programs (particularly source code) and related information; pending, unpublished patent applications; business plans; budgets; methods of calculating
What is not a trade secret example?
For example, customer lists are not considered trade secrets when the identity of the customers could potentially be discovered through public sources. However, identical information if not available through public sources could constitute a trade secret.
What Cannot be a trade secret?
Anything that is easily and completely disclosed by the mere inspection of a product put on the market cannot be a trade secret.
Are trade secrets protected?
Contrary to patents, trade secrets are protected without registration, that is, trade secrets require no procedural formalities for their protection. A trade secret can be protected for an unlimited period of time, unless it is discovered or legally acquired by others and disclosed to the public.
What is meant by trade secrets?
Trade secrets include any business information that has commercial value derived from its secrecy. Trade secrets can be very valuable to you, whether you have developed new technology, designed original products, created the perfect recipe or amassed a gold mine of customer data.
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