What makes information a trade secret?

Information is considered a trade secret if it meets the following criteria:

1. It is not generally known or readily ascertainable by others.
2. It provides a competitive advantage to the owner.
3. The owner takes reasonable steps to keep the information confidential, such as implementing security measures, requiring employees to sign non-disclosure agreements, and limiting access to the information.
4. The information has commercial value because it is secret and provides a competitive advantage.

Elements of a Trade Secret

To qualify as a trade secret, information must meet the following elements:

1. Secrecy:
- The information is not generally known to the public or competitors.
- Reasonable steps have been taken to keep it confidential.

2. Value:
- The information provides a competitive advantage.
- Its unauthorized disclosure would cause economic harm to the owner.

3. Legitimate Purpose:
- The information has been acquired through lawful means, such as research and development.
- It is used for the owner's legitimate business purposes.

4. Reasonable Effort to Maintain Secrecy:
- The owner has implemented reasonable measures to prevent unauthorized disclosure, such as:
- Physical security (e.g., access controls, encryption)
- Contractual obligations (e.g., non-disclosure agreements)
- Employee training and awareness
- Monitoring and investigation of potential breaches

5. Duration:
- The protection of a trade secret lasts as long as the information remains secret.
- However, the secrecy requirement can be lost if the information is independently discovered or becomes public knowledge.

Examples of Trade Secrets

- Formulae for proprietary products
- Manufacturing processes
- Customer lists
- Marketing strategies
- Research and development data
- Confidential algorithms
- Business plans