Trade Secret Research Paper
Cody Patton
Professor Hidy
Research Paper
April 17, 2012
Trade Secrets with Foreign Affairs On a day to day basis, employees working for large corporations deal with various types of information, client lists, and software. When dealing with all of this “company intelligence” it is important to know that all of these have the capability of being what is called a trade secret. When the phrase trade secret is used it basically refers to any confidential business information which provides an enterprise of competitive edge (World). In order for a piece of information to be considered a trade secret, the company must take reasonable steps to keep it an actual secret and keep all possible outlets disclosed. Companies who leave this information available are at risk at losing millions of dollars in profitability and could lead to worse. It has happened to companies all over the world and it is imperative that a company stay in close contact with all employees and former employees that might have had access to these so called trade secrets. Parties participating in the use of trade secrets are almost always closely related internally to the company being affected by the secrets. “In more than 90% of trade secret cases in both state and federal courts, the alleged misappropriator was either an employee or business partner of the trade secret owner.” (Milligan) This is why it is so important for companies to take the reasonable steps to keep their ideas confidential. Trade Secrets are protected differently than patents; they do not need registration and are protected without any procedural formalities. (World) Also differently than patents, trade secrets can be protected for an unlimited number of years and this is makes them very attractive for SME’s. (World) Although they can be protected for an indefinite period of time there are still some certain criteria a trade secret must meet to be considered one. “While these conditions vary from country to country,
Professor Hidy
Research Paper
April 17, 2012
Trade Secrets with Foreign Affairs On a day to day basis, employees working for large corporations deal with various types of information, client lists, and software. When dealing with all of this “company intelligence” it is important to know that all of these have the capability of being what is called a trade secret. When the phrase trade secret is used it basically refers to any confidential business information which provides an enterprise of competitive edge (World). In order for a piece of information to be considered a trade secret, the company must take reasonable steps to keep it an actual secret and keep all possible outlets disclosed. Companies who leave this information available are at risk at losing millions of dollars in profitability and could lead to worse. It has happened to companies all over the world and it is imperative that a company stay in close contact with all employees and former employees that might have had access to these so called trade secrets. Parties participating in the use of trade secrets are almost always closely related internally to the company being affected by the secrets. “In more than 90% of trade secret cases in both state and federal courts, the alleged misappropriator was either an employee or business partner of the trade secret owner.” (Milligan) This is why it is so important for companies to take the reasonable steps to keep their ideas confidential. Trade Secrets are protected differently than patents; they do not need registration and are protected without any procedural formalities. (World) Also differently than patents, trade secrets can be protected for an unlimited number of years and this is makes them very attractive for SME’s. (World) Although they can be protected for an indefinite period of time there are still some certain criteria a trade secret must meet to be considered one. “While these conditions vary from country to country,
Cited: 1. Robert Miligan, New Article on Trade Secret Litigation in State Courts Released, http://www.tradesecretslaw.com/2011/02/articles/trade-secrets/new-article-on-trade-secret-litigation-in-state-courts-released/, visited April 16, 2012 2. Marc C. Reisch, China Tied To Trade Secret Theft, Chemical and Engineering News, February 3, 2012, ISSN 0009-2347 3. Jeremy Pelofsky, Chinese Man Pleads Guilty for U.S. Trade Secret Theft, Reuters, October 18, 2011, no page or column 4. Gene Quinn, Trade Secret, IPWatchDog, December 23, 2007, no page or column 5. Ashley Post, Tackling International Trade Secret Cases, Inside Counsel, January 1st, 2012, no page or column 6. World Intellectual Property Organization, What is a Trade Secret, http://www.wipo.int/sme/en/ip_business/trade_secrets/trade_secrets.htm, visited April 16, 2012