Understanding US Trade Secret Law

Trade secret law protects business information that provides a competitive advantage by not being generally known or easily ascertainable, so long as adequate measures have been taken to keep the information secret. The main features of US trade secret law are:

Definition: Trade secrets are ‘all forms of financial, business, scientific, technical, economic, or engineering information, including patterns, plans, compilations, program devices, formulas, designs, prototypes, methods, techniques, processes, procedures, programs, or codes, whether tangible or intangible, and whether or how stored, compiled, or memorized… that (a) derive independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by, other persons who can obtain economic value from its disclosure or use, and (b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.’ 

Protection: Protected by confidentiality and by reasonable precautions to prevent the likelihood of unauthorized access. 

Period of Protection: Trade secrets are protected so long as they are kept secret and confer a competitive advantage.