Understanding Trade Secrets

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Sometimes an inventor or business decides

that the best way to protect their IP is

to just keep it a secret

from everyone else.

These are called trade secrets,

and they include things like formulas,

processes, designs,

methods of manufacturing products,

and compilations of information.

Some famous examples of trade secrets

include the recipe for Coca-Cola,

the 11-spice and herb blend used

by Kentucky Fried Chicken,

and Google's search algorithm.

It's important for companies to keep their

information safe so other people

and companies can't use it to create

a similar product and sell it themselves.

Protecting trade secrets is

a do-it-yourself process.

One doesn't file for formal protection

for trade secrets like they

would for patents or copyrights.

Owners of trade secrets simply

keep the information secret.

There are legal protections for trade

secrets, such as a non-disclosure

agreement for anyone

with knowledge of the information.

Usually, only a few people know all

the information that makes up a trade

secret,

and even though trade secrets aren't

legally registered as intellectual

property, stealing or publishing

them is still illegal.

Federal labs can't have trade secrets

on inventions and processes

they've developed.

The government equivalent

is classified information.

But when labs partner with businesses

and individuals, they may need to learn

about those partners' IP to help.

T2 laws have

been put in place that allow federal labs

to keep quiet about partners' trade

secrets so they can work together

and companies can be sure their

information is safe throughout

the partnering process.

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