{"id":4509,"date":"2016-04-12T17:40:39","date_gmt":"2016-04-12T22:40:39","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-laws-and-regulations\/theft-of-trade-secrets.html"},"modified":"2024-06-06T02:54:22","modified_gmt":"2024-06-06T07:54:22","slug":"theft-of-trade-secrets","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-laws-and-regulations\/theft-of-trade-secrets.html","title":{"rendered":"Theft of Trade Secrets"},"content":{"rendered":"\n
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Theft of Trade Secrets<\/h1>\n
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\n By Jade Chounlamountry, Esq.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Trade secrets are confidential information that gives a business a competitive edge. These secrets include everything from commercial strategies to manufacturing and industrial know-how. A classic example is the guarded recipe for Coca-Cola, one of the most renowned trade secrets.<\/p>\r\n

Someone using confidential business information without permission is stealing a trade secret. Protecting trade secrets falls under intellectual property<\/a> or unfair competition laws. These laws vary depending on the specific jurisdiction’s regulations.<\/p>\r\n

Defining Trade Secrets<\/h2>\r\n

The definition of a trade secret<\/a> will vary from jurisdiction to jurisdiction. A trade secret is information a company protects to create a competitive advantage. The information must not be generally known or reasonably found by others to qualify as a trade secret.<\/p>\r\n

Trade secrets include advertising strategies, sales methods, customer lists, and manufacturing processes. They also can be industry-specific, such as a company’s food or drink recipe. Courts determine whether something is a trade secret on a case-by-case basis.<\/p>\r\n

Trade Secrets vs. Patents<\/h2>\r\n

Trade secrets and patents<\/a> are two different ways businesses can protect their valuable ideas. The advantage of trade secrets is that they don’t have a time limit, as long as they stay a secret. However, they need strong internal protection to prevent disclosure. Trade secrets become more difficult to enforce if someone else discovers them.<\/p>\r\n

Patents are official certificates that grant a business exclusive rights to its invention for a limited time. Patents are typically valid for 20 years. This is like saying, "Hey, I made something new and no one else can use it without my permission." Patents are more suitable for things that can be easily explained and replicated, like a new gadget or a unique machine. The advantage is that once you have a patent, you can stop others from making, selling, or using your invention without your approval.<\/p>\r\n

Choosing between trade secrets and patents depends on the situation. Some businesses prefer the secrecy and flexibility of trade secrets. Others might go for the legal protection and recognition that come with patents. It’s like having different tools in a toolbox \u2013 you pick the one that fits the job best.<\/p>\r\n

Methods of Stealing Trade Secrets<\/h2>\r\n

There are numerous different ways of illegally acquiring trade secrets, such as:<\/p>\r\n