Business

The difference between trade secrets and trademarks

Some people are confused between trade secrets and trademarks. A trademark is something that is publicly recognized and known to be officially associated with a particular company. In contrast, a trade secret can be a much broader definition and is not made public by its very name.

According to the laws of most states, any device, pattern, formula, idea, or collection of information that gives the owner an advantage in the marketplace and is protected by the owner in a way that demonstrates that it can reasonably be expected Keeping it from being discovered by competitors or the public without stealing it is considered a trade secret.

There are many examples I can give of trade secrets. In a real product, a trade secret could be the way certain ingredients are combined in the formulation of a nutritional supplement. Recipes, particularly those used in commercial restaurants, are considered trade secrets.

A very famous one that I can think of right away is Colonel Sander’s recipe for his Kentucky Fried Chicken. An idea for an invention that one has that has not yet applied for a patent would also be considered a trade secret, as would the complex algorithms that search engines like Google use to give us search results online.

Trade secrets are the opposite of other types of intellectual property protection, such as trademarks and patents. The idea of ​​a trade secret is to keep it from the public knowledge and it is basically something that a person or company does for themselves. Your trade secret will be protected by law until you make the information public.

Companies and individuals protect information that they cannot protect with other legal means, such as patents and trademarks. There are many things that can be considered trade secrets. An idea that will give you a huge leap over your competition in a particular market or even an idea for software or a website would also be a trade secret. Business information that you keep secret and only allow employee access, such as marketing plans, costs, and pricing, would be protected by law.

Under the law, a trade secret owner can legally prevent employees from using or disclosing trade secret information by binding them to confidentiality or nondisclosure agreements. They also have legal protection against people who obtain the information by stealing it or through industrial espionage, as well as against people who obtain the information knowing that it is a protected trade secret.

The best way for a company to protect itself legally is to have employees sign a confidentiality agreement, also known as an NDA. You should also have them signed by anyone you do business with, such as lenders and investors. An intellectual property attorney can help you draft this important document.

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