Patent and Trademark Resource Center (PTRC)

According to the Uniform Trade Secrets Act, a trade secret is, "information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

1. derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and
2. is the subject of efforts that are reasonable under the circumstances to maintain its secrecy."

Trade Secrets Versus Patents

• Information is a granted patent is published and, after expiration of the patent term, is in the public domain.

• A patent requires an application process, which will not always result in a granted patent.

• A key remedy for violation of patent rights is a suit for patent infringement.

• Trade secrets can remain secret indefinitely.

• Before filing, a patent application would be a trade secret.

• A key remedy for violations of trade secret rights is a suit for misappropriation of trade secrets.