Legal Protection of Trade Secrets
Trade secrets are a critical yet often overlooked component of intellectual property. Unlike patents or trademarks, trade secrets derive their value from being kept confidential. Businesses rely on them to maintain competitive advantages, whether through proprietary formulas (e.g., Coca-Cola’s recipe), manufacturing processes, or customer databases. This article explores how companies can protect their trade secrets and the legal remedies available if they are compromised.
What Qualifies as a Trade Secret?
A trade secret must meet three key criteria:
Not Generally Known – The information is not publicly available.
Confidentiality Measures – The owner takes reasonable steps to keep it secret.
Economic Value – The secrecy provides a competitive edge.
Examples include:
Algorithms & software code
Marketing strategies
Supplier & client lists
Manufacturing techniques
Legal Protection of Trade Secrets
Unlike patents (which require public disclosure), trade secrets remain protected indefinitely—as long as they stay secret. Key legal frameworks include:
The Defend Trade Secrets Act (DTSA, U.S.) – Allows federal lawsuits for theft.
EU Trade Secrets Directive – Standardizes protection across Europe.
Egypt’s IP Law No. 82/2002 – Criminalizes trade secret misappropriation.
How to Protect Trade Secrets
Non-Disclosure Agreements (NDAs) – Require employees/partners to maintain confidentiality.
Restricted Access – Limit information to key personnel only.
Digital Security – Use encryption, password protection, and access logs.
Employee Training – Educate staff on handling sensitive data.
What to Do If a Trade Secret is Stolen
File a lawsuit for injunctions and damages.
Report to authorities (e.g., economic crimes divisions).
Audit security protocols to prevent future breaches.
Trade secrets are invaluable assets that require proactive protection. Companies must implement robust security measures and legal safeguards to prevent theft and maintain their market position.
For a consultation with our legal team regarding the protection of your intellectual property, book a free 30-minute consultation. Let us help you safeguard what matters most to you.
