Trade secrets are the commercial secrets that have value to a business, including for example, formulas, designs, systems, customer contacts, marketing plans/data, and engineered products that cannot be reverse engineered. To be a trade secret, the information needs to be known only to a limited group of persons having a duty of confidentiality and be subjected to strict measures to ensure the confidentiality of those secrets.
There are several types of trade secrets a business can possess. Below is a list of those most common:
Protocols within a business to safeguard trade secrets are required for proof of the existence of a trade secret.
One of the most well-known examples of a trade secret is the recipe for Coca-Cola.
It is essential that strict efforts are made by that business to protect the trade secrets. It is always recommended that a business seek the advice of an experienced IP lawyer to assist in identifying and safeguarding the trade secrets. In addition, there are processes a business can adopt to ensure that their trade secrets maintain their trade secret status. Failure to maintain trade secret strictly designed protocols can easily cause them to lose their trade secret status. Protocols may include:
Restraint of Trade terms in employment contracts with severe remedies can avoid leakage of trade secrets by former employees. As long as the former employer uses strict measures to maintain its trade secrets, it can have a cause of action against a former employee who divulges a trade secret to a future employer.
Coulter Legal provides strategic IP services to small, medium, and large businesses, from identification and capture, through to management, commercialisation and enforcement of your IP rights.
Our Intellectual Property expertise spans across areas such as copyright, design rights, trade marks, patents and other intangible assets and IP rights including confidentiality, trade secrets, and domain names.