trade secrets
Definition
A trade secret is any confidential business information that gives your company a competitive advantage, such as a recipe, formula, customer list, or process that competitors do not know. The law protects this information as long as you take reasonable steps to keep it secret, like requiring employees to sign confidentiality agreements.
Example
If your bakery has a unique cookie recipe that customers love and you keep it locked up and share it only with trusted staff under a confidentiality agreement, that recipe qualifies as a trade secret.
Watch Out
If you fail to actively protect your trade secret by controlling who accesses it and how, a court may decide the information no longer qualifies for legal protection.
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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.