What are the differences between trade secrets and confidential information?

Trade secrets and confidential information are both forms of intellectual property protection, but they do have some distinct differences. Trade secrets refer to information that is closely guarded by a company and is not generally known or readily ascertainable by the public. These secrets must have some value to the company, and can include information such as a formula, pattern, program, device, method, technique or process. Confidential information, on the other hand, is information that is given to a company under a non-disclosure agreement, and it is not necessarily valuable to the company. It can include sensitive customer information, financial information, business plans or strategies, and other internal records. The primary difference between trade secrets and confidential information is that while trade secrets are valuable to the owner, confidential information does not necessarily provide a competitive advantage to the receiving company. Trade secrets are also much more tightly guarded than confidential information, and a company may invoke civil or criminal penalties against someone who misappropriates their trade secrets. In Arizona, trade secrets are protected under the Arizona Uniform Trade Secrets Act (AUTSA). This Act protects trade secrets from misappropriation, and any person who does so may be liable for civil damages or criminal penalties. Confidential information is also protected, but it does not come with the same level of protection as trade secrets.

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What are the differences between trade secrets and confidential information?

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