TRADE SECRET

Trade secret is the protection afforded to business information which could not be ascertained by obvious means.

The California Uniform Trade Secrets Act defines trade secret as follows:

“Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and
(2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.”
Cal. Civ. Code § 3426.1 (West)

Trade secret differs from the other three categories of intellectual property in one very significant respects; trade secret is a protection which disappears if the secret is made public as a result of the failure of the owner of the trade secret to take adequate measures to protect the confidentiality of the information.

Therefore, you should be sure you have taken measures to protect your proprietary business information. Otherwise, you might waive your rights to protection should someone misappropriate your hard-earned business knowledge.

Conclusion

As a small business owner, you should take careful inventory of your intellectual property and determine what measures you will need to implement to protect your valuable assets.

Please let me know if this information was useful. I could certainly (and would be happy to) devote an entire column to each of these very important areas of intellectual property law.