What kind of information qualifies as trade secrets?

Trade secrets are confidential and proprietary information that provide a competitive advantage to a business. This can include formulas, processes, techniques, customer lists, pricing information, marketing strategies, and other valuable information that is not generally known to the public or competitors. Trade secrets must be actively protected by the business to maintain their status as confidential information.

Confidential Information that Provides a Competitive Advantage

- Technical Information:
- Formulas, designs, processes, prototypes
- Software code, algorithms, inventions
- Manufacturing techniques, equipment specifications

- Business Information:
- Customer lists, marketing strategies
- Financial projections, pricing data
- Research and development results

- Other Valuable Information:
- Proprietary databases, training manuals
- Employee handbooks, confidential memos

Must be Kept Secret

- The information must not be generally known or readily ascertainable by others.
- The owner must make reasonable efforts to maintain its secrecy, such as:
- Marking documents confidential
- Limiting access to authorized personnel
- Using encryption and access controls

Has Commercial Value

- The information must provide a competitive advantage to the owner.
- Its disclosure would cause the owner to suffer a competitive disadvantage.

Other Key Points:

- Reverse Engineering: Information obtained through reverse engineering does not qualify as a trade secret.
- Independent Discovery: Information discovered independently by third parties is not a trade secret.
- Employee Confidentiality: Employees have a duty to protect trade secrets even after leaving employment.
- Legal Protection: Trade secrets are protected by various laws and regulations, such as the Uniform Trade Secrets Act (UTSA) and the Defend Trade Secrets Act (DTSA).