What defines a trade secret?

A trade secret is defined primarily by its secrecy; it remains protected as long as it is not disclosed to the public. This means that as long as the information is kept confidential and measures are taken to protect its secrecy, it qualifies as a trade secret. This can include formulas, practices, processes, designs, instruments, or a compilation of information that provides a business advantage over competitors who do not know or use it.

The essence of a trade secret is the fact that its value is derived from its confidentiality. If a trade secret becomes public knowledge, it loses its protected status. Therefore, the ongoing proprietary nature of a trade secret is contingent upon the owner's efforts to maintain its secrecy, including implementing non-disclosure agreements, physical security measures, and internal controls to limit access.

This delineates trade secrets from other forms of intellectual property such as patents, which require public disclosure in exchange for exclusive rights, as well as from publicly available information, which does not afford protection.