A trade secret is a formula, practice, process,

design, instrument, pattern, or compilation of information which is not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or

customers. In some jurisdictions, such secrets are

referred to as confidential information.

The ingredients or chemical composition of a product Design of a machine

Instructional methods
Details of a manufacturing process Methods of quality control Document tracking process Results of marketing surveys Financial projections List of customers and suppliers Employee Details

1.

2.

3.

The extent to which the information is known outside his business The extent to which it is known by employees and others involved in his business The extent of measure taken by him to guard the secrecy of the information

5. The value of information to him and

his competitors. 6. The amount of effort or money expended by him in developing the information. 7. The ease or difficulty with which the information could be properly acquired or duplicated by others

It is important to bear in mind that a trade secret need not be something that is novel to

be protected. The only important requirement

is that it must be a secret.

It must not be generally known or readily accessible by people who normally deal with such

type of information

It must have commercial value as a secret. The lawful owner must take reasonable steps to keep it secret.

Employment agreement: These may include

the type of information that is likely to be disclosed, the manner in which it should be used and restrictions on disclosure posttermination.

Trade Secret Policy: A basic step to develop

such a policy is to identify and prioritize the business secrets based on their value and sensitivity. Employees must be informed about the policy and consequences of its breach before they agree to abide by the policy and sign an acknowledgement to that effect.

Non-disclosure Agreements (NDAs): Businesses

can also enter into NDAs with third parties while discussing any business prospects and ventures.

Adequate Documentation : It is important for

businesses to keep a track of the trade secrets that are developed and have sufficient records to show that the trade secret was developed by them and belongs to them. These records would be of evidentiary value in case of a dispute. It would also be useful for such businesses to conduct a trade secret audit at regular intervals to a nd k e ep up t o d a t e wit h a ny c hanges .

Security Systems: Access to trade secrets and

confidential information may also be restricted to only select personnel who have to undergo proper security checks. In case of an electronic

environment,
adequate

the

businesses
programs,

should
virus

use
scans,

software

firewalls and other security and authentication

technologies to safeguard their trade secrets