A trade secret is any formula, process, design, or compilation of information, which is not generally ascertainable, by which a company can obtain an economic advantage over competitors or customers.

The Uniform Trade Secrets Act (UTSA) defines a “trade secret” as “information, including a formula, pattern, compilation, program, device, method, technique, or process that:

• Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and

• Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.”

Examples of famous trade secrets are the recipe for COCA-COLA® and the KFC® “original recipe” for chicken. But trade secrets can also be a special method or process, a coveted business list, an unknown process, or something that sets the owner apart from competitors because the secret is in fact kept a secret.

Klemchuk PLLC is a leading IP law firm based in Dallas, Texas, focusing on litigation, anti-counterfeiting, trademarks, patents, and business law. Our experienced attorneys assist clients in safeguarding innovation and expanding market share through strategic investments in intellectual property.

This article is provided for informational purposes only and does not constitute legal advice. For guidance on specific legal matters under federal, state, or local laws, please consult with our IP Lawyers.

What is a Trade Secret?

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