Trade Secret A. Trade secret is primarily a common law form of legal protection although some states now have statutes modeled on the Uniform Trade Secrets Act. Trade secret protection extends only to certain types of business property. A trade secret is be a formula, pattern, device or compilation of information used in one's business to provide a competitive advantage. Chemical formulas, manufacturing plant processes, customer lists, computer programs, etc., have all been subject to trade secret protection. Thus, the range of subjects for which trade secret protection is available is much broader than that for which patent protection may be obtained.
Trade secrets are of potentially infinite duration, so long as secrecy is maintained.
In fact, the primary requirement for a trade secret is secrecy. The right may be lost accidentally or lost by theft or breach of confidentiality by an employee or someone with whom the owner is negotiating. To succeed in trade secret litigation, the owner of the secret must demonstrate that the secret was unlawfully obtained and not discovered through lawful means such as reverse engineering.