Definition of a Trade Secret
Many states have adopted the Uniform Trade Secrets Act which protects information that
(1) derives economic value from not being known to the public and (2) is the subject of
reasonable efforts to maintain its secrecy. A trade secret can include a business formula,
compilation, pattern, program, device, method, technique, or process which, though
neither copyrighted nor patented, is used in the conduct of the owner’s business, is not
disclosed to the public, and provides the owner with some competitive advantage.
The following factors will likely be considered in determining whether a trade secret
exists:
The extent to which the information is known outside the owner’s
organization;
The extent to which it is known by employees and others involved in the
organization;
The extent of measures taken by the owner to guard the secrecy of the
information (e.g., labeling the information “Trade Secret” or “Confidential,”
advising employees of the existence of a trade secret, limiting access to the
information within the company on a “need-to-know basis,” and controlling
company access);
The economic value of the information to the owner and the owner’s
competitors;
The amount of effort or money expended by the owner in developing the
information; and
The ease or difficulty with which the information could be properly acquired
or duplicated by others.
(source:- USPTO)
