Trade Secrets
Many forms of Intellectual Property, such as patents and copyrights, are a grant of limited rights in exchange for disclosing valuable information to the public. But trade Secrets are, in many ways, the opposite proposition. Rather than pursue a patent, or copyright, one may hold on to valuable information that confers a commercial advantage as a trade secret, in perpetuity.
Perhaps the most famous example of a trade secret is Coca-Cola Company's "7X" secret formula, which has been maintained without public disclosure for over 100 years. Legend has it that only 2 executives are permitted knowledge of the formula, and their identities are also kept secret.
Setting aside exotic cloak-and-dagger tales, trade secrets are essential and prevalent in modern commerce. For example, a consumer product distribution company that could not protect its customer list as a trade secret would not be in business long, as a hundred competitors marketed all of their work product, with no cost of their own. People work hard to develop productive business advantages that must be kept secret to benefit from that work. And the law understands and incentivizes that productive work.
Trade Secret Misappropriation claims are very common in the U.S. The lion's share of these cases arise in the context of a former company employee, allegedly using trade secrets to benefit a competitor. These cases often determine the ultimate fate of both competitors, and the central issues typically include the measures taken by the alleged trade secret owner to maintain secrecy, such as confidentiality agreements and security. Understanding how to maintain trade secrets through proper protective action, based on how those issues play out in litigation, is critical.
The attorneys at Beckman, Burns & Nguyen have experience protecting millions of dollars in trade secrets in state and federal court, for Fortune 500 companies. For more information concerning how the firm can help, contact us at info@bbnlaw.com, or explore the additional informational links below.