Any information of a company whether it’s a process or a method or a scheme which has an economic advantage and is kept out of the reach of the public or any individual outside the company are called trade secrets. Trade secrets are not like patent and hence do not get expired. They are the intellectual property of the company should always be kept confidential.
Advantages of a trade secret are as follows:
1. No expiry date and hence no fear of anyone copying your ideas.
2. No registration cost or compliance is required.
Risks of not keeping an eye on your trade secrets:
- From learning the trade secrets of your company, an individual can pose a serious threat to your business by selling it to your competitors.
- He/she can form a business based on your trade secrets and then make it their own legally. The legal process followed can become lengthy and costly. chnge to The legal process over the ownership of the trade secrets can become time consuming and impact heavily on the finances of your company.