Minneapolis Trade Secrets Attorney

Trade Secret Enforcement

A trade secret is a formula, practice, or pattern which is not generally known or easy to ascertain, by which a business gains an economic advantage over competition. It is often referred to as ‘confidential information’ or ‘classified information.’ To guard this information, a company creates non-compete non-disclosure contracts with its employees. Unlike a patent, the protection of confidential information does not expire, creating perpetual control of protected information.

Trade secrets are not defended in the same way as patents and trademarks. Patents and trademarks are safeguarded by federal law whereas trade secrets are backed by state law. Most states (excluding Massachusetts, New York, New Jersey, North Carolina, and Texas) have adopted the Uniform Trade Secrets Act. Violations of non-compete non-disclosure agreements and the Uniform Trade Secrets Act can carry stiff financial penalties, used as a disincentive for revealing protected information.

Companies commonly try to discover the secrets of their competitors through lawful methods such as reverse engineering. Less legal methods of discovery include industrial espionage. If a trade secret is acquired through an illegal approach, the secret is thought to have been misappropriated and the acquirer of the secret will be subject to liability. Perhaps the most famous and elusive trade secret is the Coca-Cola formula, which has protected its secret ingredient “Merchandise 7X” since its inception in 1886.

If you have any questions about trade secret enforcement, contact the experienced Minneapolis business lawyers at Skjold Barthel today.