Understanding trade secrets and protections against misappropriation

March 11, 2014 (Press-News.org) Understanding trade secrets and protections against misappropriation

Article provided by Reminger Attorneys at Law
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Trade secrets are an important component to any business--just ask the global iconic Coca-Cola Company. Their priceless million-dollar Coke recipe invented in the late 19th century has been guarded from disclosure for decades.

But what exactly encompasses a trade secret? Is a trade secret the same as a patent? Many people may be surprised to know that both are different and that a trade secret doesn't need any formal registration to be protected.
What is a trade secret?

A trade secret isn't just a secret recipe like the well known Coca-Cola soft drink; it can take many different forms. Trade secrets are essentially any type of confidential information specific to a business which gives that business a competitive edge. A few examples of different types of trade secrets include but are not limited to a company's:
-Designs
-Processes
-Sales or manufacturing procedures
-Advertising strategies
-Client lists

Unlike patents, though, there are typically no formalities, registration procedures, costs, or limited protection periods for trade secrets.

However, trade secretes must still possess certain traits to receive protection. They must generally be confidential as well as:
-Possess commercial value
-Guarded by the company against public release
-Be difficult for competitors to duplicate

Repercussions of misappropriated business information

In the United States, trade secrets are highly valued and any unauthorized use of trade secrets is illegal. Under the Uniform Trade Secrets Act and various other regulations, there are repercussions for those who misappropriate such secrets.

A high-profile case in point involving a jury award of $22.8 million dollar late last year shows misappropriation of confidential business information is no joke in the eyes of the law.

A jury handed down the multi-million dollar award to a maker of dairy processing equipment after evidence revealed that a former employee of the manufacturer stole valuable trade secret documents upon leaving the company and thereafter provided the confidential information to the company's competitor to utilize.

This case, and other similar multi-million dollar jury verdicts, shows the real legal repercussions that go in tandem with authorized use of trade secrets and other protected business information.
Speaking with a business lawyer

If you have questions about confidential information pertaining to your business, how to protect your trade secrets, or misappropriation of such information, consulting with a knowledgeable business attorney is advised. A lawyer can offer advice and potential legal recourse available based on your specific circumstance.