Trade secrets are manufacturing processes or recipes created by business owners. These secrets and processes are protected from public knowledge. Unlike other forms of intellectual property, trade secrets remain unregistered and are instead protected under lock and key. In some circumstances, however, even the most tightly kept trade secret can be discovered, the result of which is a loss in revenue without any legal recourse.
Discovery of a trade secret is a big drawback to relying exclusively on trade secret protection as a means of safeguarding intellectual property. Any of the following events can destroy trade secret rights:
(1) discovery by independent invention;
(2) discovery by "reverse engineering," that is, by starting with the known product and working backward to find the method by which it was developed, the acquisition of the product having been by a fair and honest means, such as purchase of the item on the open market;
(3) discovery under a license from the owner of the trade secret;
(4) observation of the item in public use or on display; or
(5) obtaining the trade secret from published literature.
If you are more concerned about protecting your technique from discovery than the overall longevity of keeping it a secret, you may want to consider patenting your processes instead. Patenting grants you exclusive ownership to the process for 18 years. This includes protection from accidental discovery and reverse engineering. In fact, once your process is patented, no one can use it for those 18 years. Patents are a much more viable form of protection when your recipe or process can be very easily reverse engineered or otherwise discovered.
Getting Help
For more information on trade secrets and patents contact an intellectual property attorney for a consultation or log on to www.uspto.gov.