trade secret
Definition
A trade secret is any confidential business information that gives your company a competitive edge, such as a recipe, formula, customer list, pricing strategy, or manufacturing process. The law protects this information as long as you actively take steps to keep it secret and it has real business value because it is not publicly known.
Example
If your bakery has a signature cookie recipe that customers love and competitors cannot figure out, that recipe qualifies as a trade secret as long as you keep it locked down and only share it with employees who need to know it.
Watch Out
You can lose legal protection for your trade secret if you fail to take reasonable steps to protect it, so always use non-disclosure agreements with employees and partners who access sensitive business information.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.