Trade secrets definition

Trade secrets may be any type of information, eg, formulae, patterns, compilations, forms, programs, devices, techniques, and processes, as weH as any patentable subject matter. However, in order for it to be a trade secret, there must be definite economic value in the information not being known to the pubHc or readily determinable by a third party. 

In short, trade secret information should be disseminated only when commercially necessary, only under obligations of strict confidentiaHty, and only with definite penalty provisions for improper use or further dissemination. 

Trade secrets are creative works (usually methods, processes, or designs) that are not covered by the strict definition of an invention required for a legal patent. Or they are actual inventions that a company or individual does not want to expose to public scrutiny through the patent process (since the published patent must contain a written description of the invention). 

Under this definition—which is similar to the definitions adopted by other countries—trade secret protection is available only for information that is known to a smallish group of persons and that is considered by that group to be confidential and economically valuable. Once the information becomes more widely known, it no longer qualifies for trade secret protection because its value has been lost. As a result, once the information has become generally known, it can be freely used by other companies for their own purposes. 

Process spectroscopy is, almost by definition, done to measure and control an industrial process. Almost all of the work is driven by business needs, such as improving profits or product quality. In competitive business environments, firms preserve every advantage possible by protecting valuable measurement systems as trade secrets. Thus, firms are often reluctant to reveal process spectroscopy applications, whether successful or not. Notable exceptions to this include the desire for positive publicity around improved safety or to direct the regulatory environment. Often, companies will patent the work and will not publish in a scientific journal until after the patent is filed, if ever. Many applications, such as the classic titanium oxide-monitoring paper, are revealed only years after implementation. As a consequence, the current state of the art in the literature is quite likely far out of date. 

Trade secret protection is generally governed by state law thus, its definition can vary from state to state. One common definition provides that a trade secret consists "of any formula, pattern, device, or compilation of information that is used in one s business, and that gives him an opportunity to obtain an advantage over competitors who do not know or use it" (268). Another definition, which a significant number of states (269) have adopted in some version, is provided by the Uniform Trade Secrets Act [Ilnformation, including a for-... 

As the Supreme Court noted in Kewanee Oil Co. v. Bicron Corp., 416 U.S. at 484-91 (1974), under this definition a trade secret may be clearly unpatentable, doubtfully patentable or clearly patentable. 

This definition has been consistently applied in trade secret litigation and was adopted by the Supreme Court for federal patent law. Moreover, courts have explicitly applied the Restatement definition in cases arising under FOIA. ... 

As is clear from the Restatement definition itself, chemical formulas and process information are classic trade secrets because of their ongoing commercial value to innovators. However, the Restatement definition also extends to any. . . compilation of information that confers a competitive advantage upon those who possess it. To determine whether specific information constitutes a trade secret under this aspect of the definition, courts must consider the following factors set forth in the Restatement ... 

TRIPs also establishes minimum standards and definitions for undisclosed information or trade secrets. 

You are not required to make all records available — there are exclusions found in the standard, such as for certain trade secrets or medical information that does not fall under the definition of employee medical records. 

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