In the world of competition intellectual properties are very important for any kind of business. Under intellectual properties many kinds of properties came such as trademark registration, copyright protection, design registration, patent registration etc. Patent registration is given to inventions which are not discovered. All the inventions are not eligible to get patent protection. Sometimes they get rejected because of various reasons. In that case as a business owner you should not give up. If you have any invention which can give your business profit and it got rejected to be registered as a patent you can protect it as a trade secret. There are several ways to do the same. Although there is no separate law for the same it is possible to protect trade secrets and enjoy the advantages of protecting trade secrets.
What do you Mean by Trade Secret?
Any information which is confidential and has an advantage to the business is called a trade secret. Trade secrets are not protected as intellectual properties but it can be considered as part of the same. But there are many advantages of protecting trade secrets, hence one protects trade secrets of the business. They can be a formula, method of manufacturing, spices in any recipe, business strategies, designs etc. It can be any other information that cannot be disclosed publicly.
Trade secrets must have certain economical value and the business owner must take certain steps in order to maintain the secrecy of the same. There are many advantages of protecting trade secrets for the businesses either directly or indirectly, that is one of the reasons it has been suggested to protect the trade secrets. Some of the best examples of this are the recipe of maggi masala, formula of coco cola etc.
Essentials of Protecting Trade Secrets
Some of the key essentials to get trade secrets are discussed below:
- Identify Valuable Information
- Document and Label Confidential Information
- Secure Information Practically
- Use Confidentiality Agreements
- Employee Education
- Limit Access
- Periodic Reviews and Audits
- Clear Exit Procedures
- Monitor for Unauthorized Disclosure
- Legal Consultation
Key Advantages of Protecting Trade Secret
There are many advantages of protecting trade secrets, out of which some are discussed below:
Protects Unique Ideas
All the businesses have some secrets on the basis of which they are surviving in the market. If those secrets were revealed their uniqueness would vanish. It will not only harm their brand value but also result in losses. That is why trade secrets have been protected, so that their uniqueness will be maintained and their business will grow and develop day to day. Trade secret is having a broader perspective and it can be anything out of which one is a unique idea. If your unique idea is something which is not patentable then you can protect it as a trade secret.
Perpetual Protection
If we are talking about the time for which any intellectual property is protected then we came to know that each of them have some threshold limit like a trademark is protected for 10 years after that needs renewal. The same goes with patents and copyright. But if we see the trade secret its protection does not have any such limitation, because this can be protected for lifetime. It is also one of the advantages of protecting trade secrets.
Cheap and Easy Protection
Intellectual properties are having a proper process through which they may get protection. This process includes filing an application, uploading documentation, payment of fees, verification etc. After following the proper procedure intellectual property protection is possible. Even after following proper procedure sometimes your application gets rejected and your money gets wasted. This does not happen while protecting trade secrets. Also there is no pre-decided procedure for the trade secret. They are cheap and easy to protect. This makes them accessible to all. Out of the many benefits it is one more advantage of protecting trade secrets.
Brand Value
For any kind of business its brand value is very important and one of the key advantages of protecting trade secrets is that it helps you to build brand value in the market. For example maggie. They have their secret masala due to which maggie is preferred by the people, if they are not having the same or if that masala is not confidential lots of people in the market would have manufacturing the same and the uniqueness of the maggie will not be there. The success of maggie is because of the trade secret of their maggi masala. It not only helps them in building brands but also helps them to get profit in the market.
How to Obtain Protection as a Trade Secret?
In order to get the advantages of protecting trade secrets one must protect it by following steps:
- Determine what information within your business is valuable and provides a competitive advantage. This could include formulas, processes, customer lists, or business strategies.
- Clearly document the identified information and label it as confidential. This helps establish its status as a trade secret and informs employees and others about its sensitive nature.
- Take practical steps to secure the information. This may include using password protection for electronic files, and implementing physical security measures.
- Have employees, contractors, and business partners sign confidentiality or non-disclosure agreements. These legal documents explicitly state the obligation to keep sensitive information confidential.
- Educate employees or train them regarding the importance of maintaining confidentiality. Make them aware of the company’s policies and the consequences of unauthorized disclosure.
- Limit access to trade secret information only to those individuals who need it for legitimate business purposes. This minimizes the risk of unintentional disclosure.
- Periodic reviews and audits must be conducted in order to maintain that security measures are effective and that access to trade secrets is appropriately controlled.
- Have clear exit procedures for employees leaving the company. Revoke their access to sensitive information and remind them of their ongoing obligation to maintain confidentiality.
- Keep a watchful eye for any signs of unauthorized disclosure or breaches of confidentiality. Swift action can help minimize damage in case of a breach.
- Consult with legal professionals experienced in intellectual property law. They can provide guidance on protecting trade secrets, drafting effective confidentiality agreements, and taking legal action in case of misappropriation.
Conclusion
There are many advantages of protecting trade secrets. It is crucial for businesses to safeguard valuable and confidential information, ensuring a competitive edge. Trade secrets, which can encompass unique ideas, formulas, and business strategies, offer perpetual protection without the time limitations associated with other intellectual properties like trademarks or patents. The advantages of protecting trade secrets include maintaining the uniqueness of ideas, cost-effectiveness, and simplicity in the protection process. To obtain these benefits, businesses should identify valuable information, document it as confidential, implement security measures, and have employees sign confidentiality agreements. With these steps, trade secrets can be protected for a lifetime, contributing to the long-term success and growth of the business.
