IP-Academy

Trade Secrets

Trade secrets can take many forms, such as products, processes, practices, and many others, and can remain protected on three conditions: the subject matter has to be unknown to the general public, bring economic value by not being disclosed, and its owner has to make sure it remains confidential. If one of these criteria is not met, trade secret protection ends.

When you file a patent application, you are obliged to share your invention with the public. In return, you are granted exclusive rights for exploiting your product for a certain period of time, and moreover, you can license it to other people.

Meanwhile, if you choose to protect your IP with a trade secret, you don’t have to share your invention with the public, and it instead brings you profit by staying undisclosed.

The main benefits of utilising trade secrets over patent protection, for example, is that there is no registration cost, whilst the patent registration process can be relatively costly, and trade secrets have an infinite validity period, whereas patents in most countries are valid for 20 years.

The only people that are allowed to use information which is protected under trade secret laws are those who discover the "secret" on their own, without using illegal means or breaking the law. For example, it is not a violation of trade secret law to research a legally manufactured product and calculate its trade secret.

If we take a look at Coca-Cola, we can observe that the company owns multiple patents relating to the bottle designs, vending machines, artificial sweeteners and many more. After 20 years, all of those patents will expire, and the information will be available for the public.

However, the recipe of Coca-Cola has been protected as a trade secret for over 100 years, and is likely to stay that way unless someone comes up with the identical recipe on their own, which is highly unlikely.

Negotiating the trade secret protection landscape in various countries can be a complicated business. Each country has its own rules on what can be protected, how it’s protected, and the remedies available, therefore we recommend contacting a professional IP attorney to assist with such protection.

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