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A trade secret: is information that has either actual or potential independent economic value by virtue of not being generally known, has value to others who cannot legitimately obtain the information, and. is subject to reasonable efforts to maintain its secrecy.
What qualifies as a trade secret?commercially valuable because it is secret,be known only to a limited group of persons, and.be subject to reasonable steps taken by the rightful holder of the information to keep it secret, including the use of confidentiality agreements for business partners and employees.
There are typically three essential elements to a trade secret claim:The subject matter involved must qualify for trade secret protection (see "Scope" below for more on this)The holder of the subject matter must establish that reasonable precautions were taken to prevent disclosure of the subject matter.More items...
Trade secrets may take a variety of forms, such as a proprietary process, instrument, pattern, design, formula, recipe, method, or practice that is not evident to others and may be used as a means to create an enterprise that offers an advantage over competitors or provides value to customers.
The following tips are for businesses that wish to protect their trade secrets:Identify What Needs Protection.Label Documents That Contain Protected Information.Monitor Where Information is Stored.Secure Computers.Maintain Secrecy With Outside Vendors.Provide Adequate Security.Limit Public Access to the Company.More items...
To be legally considered a trade secret in the United States, a company must make a reasonable effort in concealing the information from the public; the secret must intrinsically have economic value, and the trade secret must contain information.
Your company's trade secrets in paper or electronic format should be accompanied by a confidentiality notice. Each page should be stamped Confidential. The notice should notify all parties that the document includes trade secrets and that access to the information is limited by your business.
The following tips are for businesses that wish to protect their trade secrets:Identify What Needs Protection.Label Documents That Contain Protected Information.Monitor Where Information is Stored.Secure Computers.Maintain Secrecy With Outside Vendors.Provide Adequate Security.Limit Public Access to the Company.More items...
The Uniform Trades Secrets Act, 1970 also provides for the definition of trade secrets, which is as follows:- "Information, including a formula, pattern, compilation, program device, method, technique, or process, that: (i) derives independent economic value, actual or potential, from not being generally known to, and
11 strategies for protecting trade secretsDesignate a trade-secret compliance officer.Include protection in training programs.Limit disclosure of confidential information.Require confidentiality agreements.Limit the copying of confidential materials.Require immediate return of all confidential information.More items...?