1. What is a trade secret?
Under the common-law definition trade secrets consist of virtually any information beneficial to the business, developed by the company through the expenditure of time and effort, unknown to others in competing businesses, and which gave an advantage to the company over such competition. Trade secrets exist in nearly every business.
2. Can my company's trade secrets be protected?
Yes. Trade secrets of various types can be protected. Trade secrets are often used when the matter involved cannot be patented or when a company decides that they do not wish to disclose the secret to the public in a patent. One famous example of this is the formula for Coca Cola. The most basic way to protect trade secrets is to take precaution against unauthorized discovery.
3. How do I enforce trade secrets against employees and others to whom I gave information?
If an employee is given access to a trade secret and uses the secret for their own use or discloses it to the competition, an injunction (a court order) can typically be used to prevent the competing entity from using the secret. The length of the injunction will depend on the duration of the secret and the necessity to prevent others from using the secret. A money damages award including attorney fees may also be available for misappropriation of a trade secret.
4. What can I do when a stranger steals my trade secret?
If someone gains access to trade secrets without permission from the company, an injunction can typically be used to prevent the competing entity from using the secret. The length of the injunction will depend on the duration of the secret and the necessity to prevent others from using the secret. A money damages award including attorney fees may also be available for misappropriation of a trade secret.
5. Why must I be careful with my trade secrets when performing work for the government?
Under the Freedom of Information Act, the general public is permitted access to government documents. Exceptions do exist for trade secrets; however, to exercise this exception a trade secret must be clearly marked as a secret and be accompanied by a statement why the information is sensitive at the time it is disclosed to the government.
