What is the difference between a trade secret and a patent?
A patent is an official government document that grants the inventor exclusive rights to use or manufacture an invention. Patents are typically issued for a limited time period and have to be applied for and approved by the government. A trade secret is information that is not publicly available and has value due to the fact that it is kept confidential. Trade secrets can include a variety of things such as customer lists, recipes, product formulas, and manufacturing processes. Trade secrets can be kept indefinitely as long as their confidentiality is maintained. In Texas, both patents and trade secrets can be protected through a legal process. Patents are typically more secure than trade secrets as they must be approved by the government and are in effect for a limited time. However, the cost of applying for and maintaining a patent can be expensive. Trade secrets are often easier and cheaper to protect. There are no formal application requirements and the information is kept private for as long as possible. Overall, patents and trade secrets are two different ways of protecting intellectual property. Patents are official government documents and have to be applied for and approved, while trade secrets are kept confidentially and are relatively easy and cheap to protect. Depending on the type of intellectual property and the resources available, either may be the better option for businesses in Texas.
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