A. Definition of a Trade Secret
Under the Uniform Trade Secrets Act, which has been adopted by most states, a trade secret is information that:
1. Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and
2. Is the subject of efforts of that which are reasonable under the circumstances to maintain its secrecy.
B. Examples of Trade Secrets
A trade secret can be almost anything that is secret and that derives value from such secrecy. Examples include:
1. Technical Information/Research & Development, including:
• Formulas
• Compounds
• Prototypes
• Processes
• Experiments and experimental data
• Calculations
• Drawings and diagrams
2. Production/Process Information, including:
• Cost/price data
• Proprietary information concerning production processes (e.g., process parameters)
• Specialized/custom production equipment
• Specifications for production equipment
• Production know-how
3. Vendor/Supplier Information, including:
• Source
• Cost/price data
4. Quality Control Information, including:
• Quality control procedures/testing
• Quality control manuals
• Quality control records
• Maintenance know-how
5. Sales and Marketing Information, including:
• Sales forecasts
• Marketing and sales promotion plans
• Competitive intelligence
• Proprietary information about customers
• Customer needs and buying habits
• Proprietary sales and marketing studies/reports
6. Internal Financial Information, including:
• Budgets
• Forecasts
• Product margins
• Product costs
• Operating reports
• Profit and loss statements
To find out more please access our IP Primer page.
