Trade secrets are a vital way for businesses to protect their intellectual property without formal registration. Unlike patents, trade secrets do not require government filing and can last indefinitely as long as they remain confidential. Businesses commonly use employee agreements, confidentiality clauses, and stringent access controls to safeguard trade secrets. However, it’s important to note that trade secrets cannot prevent competitors from reverse-engineering products or processes acquired through legitimate means.

Deciding Between Trade Secrets and Patents

Choosing between trade secret protection and patent protection depends on your specific situation. Trade secrets can provide longer-term protection compared to patents, which are limited to a 20-year term and require public disclosure of the invention. Patents offer strong legal protection against infringement but come with the cost of revealing your innovation. Conversely, trade secrets are protected as long as they are kept confidential, making them suitable for processes or technologies that are difficult to reverse-engineer or where patent protection is not feasible.

Handling Trade Secret Theft

If a trade secret is compromised, prompt action is crucial. Immediate steps include notifying involved parties and taking legal measures such as filing complaints and seeking injunctions. Prevention is key; regular audits and robust security measures can help minimize the risk of theft. At HPL, our attorneys offer expertise in both trade secret and patent law to help you determine the best strategy for protecting your valuable intellectual property. 

Contact us to schedule an intellectual property audit or to discuss how to safeguard your trade secrets effectively.