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In short, patents and trade secrets can be valuable tools for protecting inventions. As a general rule of thumb, if the invention is easily reverse engineered, then patent protection is likely the best option. If the invention is not easily reverse engineered, then trade secret protection may be the better option.
Trade secrets are a key component of IP portfolios helping businesses protect their secret formulas, know-how and other key information that gives them a competitive edge. Read our real-world trade secret cases for examples of how companies have used trade secrets to protect their intellectual property.
Trade secrets protect their owners against unauthorized acquisition, disclosure, or use of confidential information by others.
Every state has a law prohibiting the theft or disclosure of trade secrets. Most of these laws are derived from the Uniform Trade Secrets Act (UTSA), a model law drafted by legal scholars.
The inevitable disclosure doctrine permits courts to administer injunctions and permanent injunctive relief to stop an employee from working with a competitor where the employee's new job duties will reveal the former employer's trade secret or cause the employee to rely upon the former employer's trade secret.
In general, a trade secret has three parts: (1) information (2) economic value from not being generally known by others, and (3) reasonable efforts have been taken to protect the trade secret.