What is a trade secret?

A trade secret is a type of intellectual property (IP) that involves confidential information, which can be sold or licensed. For information to be considered a trade secret, it must:
– Hold commercial value due to its secrecy,
– Be known only to a select few individuals, and
– Be protected through reasonable measures by the owner, such as confidentiality agreements with business partners and employees.
Trade secrets encompass various types of information, including formulas, processes, designs, practices, instruments, patterns, or data compilations, that are not widely known or easily accessible. By keeping this information secret, businesses can gain substantial commercial advantages. Unauthorized acquisition, usage, or disclosure of trade secrets by others in violation of honest commercial practices is deemed unfair and constitutes a breach of trade secret protection.