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State And Federal Laws Protect Trade Secrets To An Extent 


A trade secret is any piece of information used by a business that isn't known to the general public, including formulas, business plans, designs, and procedures. State and federal laws protect trade secrets when other areas of intellectual property law don't offer adequate protection. An example is the formula for Coca-Cola, which remains a secret despite being over 100 years old. This formula cannot be patented because it is considered a recipe, but it can be protected under trade secret laws. 

Dangers

Trade secret law does not provide absolute protection. While the law prohibits competitors from stealing business secrets, they may be figured out by using reverse engineering. Secrets discovered via reverse engineering and then made public lose their protection. Employers wishing to keep employees from taking trade secrets to competitors should visit the Employee section of BusinessLaw.gov.

 

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  Did You Know?
 
The implications of The Inevitable Disclosure Doctrine?

According to The Inevitable Disclosure Doctrine, a company may prevent a former employee from working for the competition. The doctrine comes into effect, if the company can show how the new employment situation will inevitably lead to the disclosure of trade secrets.


 


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