What is trade secret protection in the United States?

Trade secret protection in the United States is a form of intellectual property law that allows a company to keep certain valuable information from being disclosed or stolen. Under trade secret protection, a business may legally protect confidential information such as customer lists, formulas, manufacturing processes, and other proprietary information. In order for a company’s confidential information to qualify for trade secret protection, three criteria must be met. First, the information must have economic or commercial value. Second, the information must be kept confidential to maintain this value. Finally, the company must have taken steps to keep the information a secret, such as using nondisclosure agreements, password-protecting files, and so on. In the United States, trade secret protection is governed by state laws, rather than federal law. In Virginia, this is known as the Trade Secrets Act. This law makes it a criminal offense to obtain, disclose, or use valuable trade secrets without the company’s permission. It also allows companies to take legal action against a person or business that misappropriates their trade secrets. If successful, the company may be awarded damages and other remedies, such as an injunction against future use of the trade secret.

Related FAQs

How long do trade secrets last?
What types of information can't be protected as trade secrets?
What is the law on trade secrets in the European Union?
What is the Uniform Trade Secrets Act (UTSA)?
What is trade secret law?
Are there any criminal penalties for the misuse of trade secrets?
What is a trade secret misappropriation claim?
What kind of proof do you need to win a trade secret misappropriation claim?
What legal steps can be taken to protect trade secrets?
Can trade secrets be licensed?

What is trade secret protection in the United States?

Related FAQs

Related Blog Posts