What are the Steps to Create and Protect a Trade Secret?

Because trade secrets are no registered, the steps to create and protect a trade secret are those required to keep it a secret or at least confidential. These steps can include confidentiality clauses in employment agreements and independent contractor agreements, non-disclosure agreements, password protections, limiting the information on a “need to know” basis, and other safeguards that ensure a trade secret remains confidential.

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What does a Trade Secret Protect?

A trade secret protects those business secrets not generally ascertainable to the public, by which a company can obtain an economic advantage over its competitors or customers. Specifically, trade secret protection affords protection from unfair competition through the misappropriation of the trade secret by an employee or third-party. For more information about trade secret protection see our post, What Does A Trade Secret Protect?

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What Does A Trademark Protect?

A trademark protects the goodwill a company or brand has built surrounding themselves as a source of goods or services by establishing intellectual property rights in any word, phrase, and/or design that serves to identify the source of the product or service in the eyes of consumers. Holding the rights in a trademark prevents others from using the mark in relation to those applicable goods or services. This allows the company or brand to avoid any lost sales, unfair competition, and dilution or smearing of its good name. For more information, see our post, What does a trademark protect?

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