Protecting Trade Secrets: Laws and Regulations

What are trade secrets, and what laws offer protection for this form of intellectual property?

Trade secrets are confidential company information that provide a competitive edge and can be protected indefinitely. They are safeguarded by laws such as the Uniform Trade Secrets Act and the Defend Trade Secrets Act in the U.S., as well as through international treaties coordinated by WIPO.

Final answer:

Trade secrets are a form of intellectual property that consist of any company knowledge, information, or practices that provide a competitive edge and are intended to remain confidential. These can include formulas, practices, designs, instruments, patterns, or compilations of information. Unlike patents that require the disclosure of an invention to the public in exchange for exclusive rights for a certain period, trade secrets can remain protected for an indefinite amount of time as long as they are kept secret and offer an economic advantage over competitors. The classic example of a trade secret is the formula for Coca-Cola, which is famously undisclosed and not patented.

Protection for trade secrets is outlined in various laws. In the United States, the primary framework is provided by the Uniform Trade Secrets Act (UTSA) and the federal Defend Trade Secrets Act (DTSA), which allow companies to enforce their rights against the misappropriation of trade secrets. Internationally, the World Intellectual Property Organization (WIPO) along with international treaties seek to create a cohesive structure for intellectual property protection across different countries.