This section asked for stakeholder views on the importance of trade secrets to the AI sector, in particular their role in protecting material not protected by formal IP rights. Summary of responses The general consensus of respondents was that trade secret protection is important for the AI sector. Trade secrets were valued for their flexibility and simplicity, and innovations protected in this way were often difficult for others to reverse-engineer. Patent protection, was considered unsuitable in certain contexts, owing to the need to disclose details such as algorithms. Secrecy is often important in an expanding and competitive AI sector. The responses to the consultation indicate that there are no changes required for trade secret protection in relation to AI. Respondents noted some disadvantages of using trade secrets as a form of protection for AI. One point was that individuals may be unable to identify which aspects of large volumes of information could be confidential. It was also mentioned that trade secret protection may not be suitable where disclosure of details is required. For example, for data protection or for health and safety reasons. For information to benefit from trade secret protection, additional precautions are required - some of which can be time-consuming as well as costly. Some respondents stated that they would not support the use of trade secret protection for inventions derived from AI. This is because it could cover up harmful outcomes, such as a threat to health and safety.
Respondents generally said that trade secrets are unlikely to create problems for ethical oversight of AI inventions, and that trade secret law is not intended to regulate ethical issues. Government response: Trade secrets The replies to this section of the consultation suggest that urgent change is not needed. As such, the government does not plan any action to amend trade secrets protection. However, we note the importance of trade secret protection for technologies such as AI and will monitor future developments. In particular, we note the relationship between patents and trade secrets, and will take this into account as we take forward work in this area.
Note: throughout this document, a reference to a ‘legal person’ means an individual or corporation which has legal personality.