ABSTRACT
In this chapter, we cover various aspects of “trade secrets.” “Trade secret” is a form of intellectual property of a company—encompassing manufacturing or industrial secrets (such as formulae, patterns, compilations, programs, devices, manufacturing methods, techniques, or processes) and commercial secrets (such as strategic cost structure, knowledge of consumer profiles, customer buying preferences and requirements, pricing strategies, advertising, sales and distribution strategies, etc.)—that provide competitive advantage to it in the marketplace. Unlike others, a trade secret is a protect-it-yourself form of intellectual property. A trade secret is not registered with the government, and so a company must do everything it can to keep it confidential. Thus, trade secret protection lasts only as long as the secret can be kept confidential. To start with, we explain the evolution of trade secret law in the United States. Next, we describe the differences between patents and trade secrets. Then, we elaborate on a variety of topics, including misappropriation of trade secrets, trade secret protection by courts, proving trade secret violation in court, remedies for proven trade secret violations, conditions for patenting versus trade secret protection, and development of a strong trade secret policy. Finally, we clarify trade secrets using representative examples.
