What Are Trade Secrets?

Legally reviewed by Thomas Lemler - founder of Lemler IP

One of the most powerful tools that businesses rely on is trade secrets. Read this article to learn more about trade secrets, and reach out to a skilled Washington, D.C. intellectual property lawyer from Lemler IP for assistance. Here are some of the questions you may have:

What Qualifies as a Trade Secret?

A trade secret is a form of intellectual property that encompasses any confidential business information that provides a company with a competitive edge. This can include formulas, practices, processes, designs, instruments, patterns, or a compilation of information that is not generally known or reasonably ascertainable by others.

Unlike patents, which require public disclosure of an invention, trade secrets must remain confidential. The secret could be as simple as a client list or as complex as the formula for a new drug.

To qualify as a trade secret, the information must meet certain criteria. To start, it must be genuinely secret—this means that it isn’t something that could be easily discovered by someone outside the company.

Additionally, the information must have commercial value because it is a secret.

Finally, reasonable steps must be taken by the company to keep this information secret. This could involve implementing non-disclosure agreements (NDAs), limiting access to sensitive information, and regularly updating security measures.

How Are Trade Secrets Protected Under the Law?

Washington, D.C., follows the Uniform Trade Secrets Act (UTSA). Under this law, a trade secret owner can take legal action against anyone who misappropriates their trade secret. Misappropriation generally means acquiring the trade secret through improper means, such as theft, bribery, misrepresentation, or breach of a duty to maintain secrecy.

The remedies available under the UTSA include injunctive relief, which could prevent further use or disclosure of the trade secret, and monetary damages to compensate for any financial loss suffered due to the misappropriation. In some cases, punitive damages and attorney’s fees may also be awarded if the misappropriation is found to be willful and malicious.

If you have additional questions about how trade secrets work, or you have a trade secret you’d like to protect, please don’t hesitate to contact Lemler IP today.