Trade Secrets and Confidential Information
Expert-defined terms from the Professional Certificate in Intellectual Property Law Fundamentals course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
**Trade Secret** #
**Trade Secret**
A trade secret is confidential information that provides a competitive advantage… #
Trade secrets can include any type of information, such as a formula, pattern, compilation, device, method, technique, or process. To be considered a trade secret, the information must not be generally known or readily accessible to the public. The owner of a trade secret must take reasonable measures to keep the information secret, such as using confidentiality agreements and limiting access to the information.
**Confidential Information** #
**Confidential Information**
Confidential information is any information that is not generally known or acces… #
Confidential information can include trade secrets, business plans, customer lists, and technical specifications. The party receiving the confidential information has a duty to keep it secret and not to use it for any purpose other than that authorized by the party sharing the information.
**Trade Secret Misappropriation** #
**Trade Secret Misappropriation**
Trade secret misappropriation is the unauthorized acquisition, disclosure, or us… #
Misappropriation can occur through theft, bribery, misrepresentation, or breach of a duty to maintain secrecy. Trade secret misappropriation can result in legal consequences, including injunctions and monetary damages.
**Reasonable Measures** #
**Reasonable Measures**
Reasonable measures are the steps taken by the owner of a trade secret to protec… #
Reasonable measures can include physical security measures, such as locks and alarms, and administrative measures, such as confidentiality agreements and employee training. The reasonableness of the measures is evaluated based on the circumstances, such as the value of the trade secret and the risk of misappropriation.
**Non #
Disclosure Agreement (NDA)**
A non #
disclosure agreement (NDA) is a legal contract between two or more parties that outlines the confidentiality obligations of the parties with respect to certain information. An NDA can be used to protect trade secrets and other confidential information shared between the parties. The NDA typically specifies the duration of the confidentiality obligation, the scope of the confidential information, and the permitted uses of the information.
**Unfair Competition** #
**Unfair Competition**
Unfair competition is any illegal or unethical business practice that gives an u… #
Unfair competition can include trade secret misappropriation, false advertising, and trademark infringement. Unfair competition can result in legal consequences, including injunctions and monetary damages.
**Economic Espionage Act (EEA)** #
**Economic Espionage Act (EEA)**
The Economic Espionage Act (EEA) is a federal law in the United States that make… #
The EEA provides for criminal penalties, including fines and imprisonment, for individuals and corporations that engage in economic espionage.
**Defend Trade Secrets Act (DTSA)** #
**Defend Trade Secrets Act (DTSA)**
The Defend Trade Secrets Act (DTSA) is a federal law in the United States that p… #
The DTSA allows trade secret owners to bring a lawsuit in federal court and seek remedies such as injunctions and damages. The DTSA also includes provisions for the seizure of stolen trade secrets in certain circumstances.
**State Trade Secret Laws** #
**State Trade Secret Laws**
In addition to the federal DTSA, most states in the United States have their own… #
These laws generally provide for civil remedies for trade secret misappropriation and may differ from the DTSA in certain respects. Trade secret owners can choose to bring a lawsuit under state law, federal law, or both.
**Trade Secret Licensing** #
**Trade Secret Licensing**
Trade secret licensing is the practice of allowing another party to use a trade… #
Trade secret licensing can be a way for the owner of a trade secret to monetize the information and expand the use of the trade secret beyond their own business. Trade secret licensing agreements typically include provisions for confidentiality, payment, and termination.
**Trade Secret Audit** #
**Trade Secret Audit**
A trade secret audit is a process of identifying, evaluating, and protecting a c… #
A trade secret audit can help a company ensure that it is taking reasonable measures to protect its trade secrets and can also help identify any potential vulnerabilities or risks. A trade secret audit may be conducted internally by the company or by an outside consultant.
**Trade Secret Theft** #
**Trade Secret Theft**
Trade secret theft is the unauthorized taking or copying of a trade secret with… #
Trade secret theft can occur through various means, such as hacking, industrial espionage, or employee theft. Trade secret theft can result in legal consequences, including injunctions and monetary damages.
**Trade Secret Valuation** #
**Trade Secret Valuation**
Trade secret valuation is the process of estimating the economic value of a trad… #
Trade secret valuation can be used for various purposes, such as mergers and acquisitions, licensing negotiations, and financial reporting. Trade secret valuation methods can include cost-based approaches, market-based approaches, and income-based approaches.
**Trade Secret Indemnification** #
**Trade Secret Indemnification**
Trade secret indemnification is a provision in a contract that requires one part… #
Trade secret indemnification provisions are commonly included in licensing agreements, joint venture agreements, and other contracts involving the sharing of confidential information.
**Trade Secret Insurance** #
**Trade Secret Insurance**
Trade secret insurance is a type of insurance policy that provides coverage for… #
Trade secret insurance can help protect a company's financial interests and can provide resources for legal defense and investigation. Trade secret insurance policies may vary in terms of coverage and limits.
**Trade Secret Litigation** #
**Trade Secret Litigation**
**Trade Secret Expert Witness** #
**Trade Secret Expert Witness**
A trade secret expert witness is a person with specialized knowledge or expertis… #
Trade secret expert witnesses can provide opinions and analysis on issues such as the value of a trade secret, the reasonableness of protective measures, and the causation of damages. Trade secret expert witnesses are typically retained by one of the parties in a trade secret litigation.
**Trade Secret Protection in Employment** #
**Trade Secret Protection in Employment**
Trade secret protection in employment involves the use of contracts, policies, a… #
Trade secret protection in employment may include confidentiality agreements, employee training, and access controls. Trade secret protection in employment is important for companies to maintain the secrecy of their trade secrets and to prevent trade secret theft.
**Trade Secret Protection in Mergers and Acquisitions** #
**Trade Secret Protection in Mergers and Acquisitions**
Trade secret protection in mergers and acquisitions involves the use of contract… #
Trade secret protection in mergers and acquisitions may include confidentiality agreements, due diligence checklists, and post-closing integration plans. Trade secret protection in mergers and acquisitions is important for both the buyer and the seller to ensure the continued secrecy and value of the trade secrets.
**Trade Secret Protection in Joint #
**Trade Secret Protection in Joint