While patents are protected through registration and documentation, trade secrets are protected without any procedural formalities. Trade secrets can be protected for an unlimited amount of time, however. There are conditions the information has to meet to be considered a trade secret, and complying with these conditions can be difficult and costly.

So, what qualifies as a trade secret?

• The information must be secret, meaning it is not generally known among, or readily accessible to, circles that normally deal with the sort of information in question
• It must have commercial value because it is a secret
• It must have been subject to reasonable steps by the rightful holder of the information to keep it secret

Examples of trade secrets include: a manufacturing process, business plan, product in development, etc.

A trade secret is only protected by law when the owner has made reasonable efforts to maintain its secrecy. They must show that they recognized its status as a trade secret in advance.

Getting employees on board is a good step to take when dealing with trade secrets. It should be outlined in the company policies given to the employees. It should explain why keeping information confidential is important and how it can affect the company if the secrecy is breached.

Employees with access to important information should sign a confidentiality or nondisclosure agreement as well. Often, these include a noncompetition provision, which prohibits former employees from working for or becoming the competition.

Because courts can be flexible on what constitutes a trade secret and how well it was protected, enlisting the help of a knowledgeable attorney can help. The attorneys at InnovaCounsel offer this as part of their general counsel services. Contact them for assistance with special projects or day-to-day legal affairs.