Pillar 04 · IP Navigator Shield™
Trade Secrets
Protect information that gives you a competitive edge — without publishing it.
Who it's for
Any business with recipes, algorithms, client lists, pricing formulas, source code, manufacturing processes, or proprietary know-how.
Typical cost
$0 in filing fees. Costs come from NDAs, access controls, and — if breached — litigation.
Timeline
Forever, as long as the information stays secret. Once public, it's gone.
What it is
A trade secret is information that (1) has economic value because it's not generally known and (2) is subject to reasonable secrecy measures. Coca-Cola's formula is the classic example. Unlike patents, there's no filing — protection comes from how you handle the information.
What qualifies as a trade secret
The Defend Trade Secrets Act (DTSA) and state Uniform Trade Secrets Acts define this. Three tests must all be met:
- The information is not generally known or readily ascertainable
- It has independent economic value from being secret
- You take reasonable steps to keep it secret
The 'reasonable steps' checklist
If you don't do these, courts may rule it's not really a secret — even if it truly isn't public.
- NDAs with every employee, contractor, and vendor with access
- Password-protected systems and limited access (need-to-know only)
- Physical security for prototypes, formulas, samples
- Written 'confidential information' policy in your handbook
- Exit interviews and return-of-materials procedures
Trade secret vs. patent — which one?
You often can't have both. Pick based on how long the advantage will last and whether reverse-engineering is feasible.
- Choose trade secret when: process is hard to reverse-engineer, advantage lasts >20 years, or you can't publicly disclose
- Choose patent when: competitors could reverse-engineer it, or you need investor-facing legal proof of ownership
Official resources
Free government and public sources. No login required unless noted.