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A trade secret is something used in a company's business that (a) is not known or readily accessible by competitors, (b) has commercial value or that provides a competitive advantage in the marketplace, and (c) the owner of the information protects from disclosure through reasonable efforts to maintain its secrecy.
The most common and most effective way to protect trade secrets is through use of nondisclosure agreements (NDAs). Courts have repeatedly reiterated that the use of nondisclosure agreements is the most important way to maintain the secrecy of confidential information.
Popular examples of trade secrets include the recipe for Coca-Cola and the formula for WD-40. Trade secrets may also include items that an individual or company has not chosen to patent yet, such as a new plant hybrid or mechanical invention.
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.
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.
Trade secrets may differ across jurisdictions but have three common traits: not being public, offering some economic benefit, and being actively protected.
The plaintiff in a trade-secret case lawsuit must prove three facts: (1) it has some valuable business information that it has kept secret; (2) the information is not generally known; and (3) the defendant has used that secret. A defendant may attack each showing, but some attacks are better than others.
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.
Trade Secrets Valuable or Potentially valuable. Because it is not known by other competitors. It would have value to the competitors if disclosed to them. Reasonable Efforts were made to keep it secret.