What is the difference between trade secrets and confidential information?

The difference between trade secrets and confidential information is an important legal distinction to understand, especially in South Dakota. Trade secrets are information that is not generally known or ascertainable, has economic value due to its secrecy, and is subject to reasonable efforts to maintain its secrecy. Trade secrets can be ideas, formulas, methods, techniques, processes, or customers’ personal information. Meanwhile, confidential information is information that is disclosed in confidence and is subject to reasonable efforts to maintain its secrecy. This type of information is generally protected from disclosure and can include records, customer lists, pricing information, marketing strategies, and other similar information. However, confidential information does not necessarily have to have economic value or provide a competitive advantage. In South Dakota, both types of information are protected by trade secret law. This law prohibits the improper use or disclosure of secrets or confidential information that has been obtained from a business that had a duty to keep it confidential. Violations can lead to serious legal consequences, including fines and injunctions.

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What is the difference between trade secrets and confidential information?

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