What is a trade secret?

A trade secret is defined as a unique formula, process, method, or piece of information that provides a business with a competitive advantage over others who do not know or use it. This could include things like recipes, manufacturing processes, or proprietary software. The key aspect of a trade secret is that it is not publicly known and is kept confidential by the business in order to maintain its economic advantage.

In contrast, a government-recognized patent involves a formal registration process and grants exclusive rights to an invention for a certain period of time. Publicly disclosed company information is not a trade secret because it is available to the public and lacks the confidentiality necessary for it to maintain its economic advantage. While any confidential information might seem relevant, not all confidential information qualifies as a trade secret unless it meets specific criteria related to its value and maintenance of secrecy within the business context.