What is the difference between trade secrets and confidential information?

The difference between trade secrets and confidential information can be confusing for many. In Virginia, trade secrets are defined in the Virginia Trade Secrets Act, which went into effect in 2013. This Act defines a trade secret as a formula, pattern, compilation, program, device, method, technique, or process that has both a business value and is kept confidential. Confidential information, on the other hand, is not defined in the Virginia Trade Secrets Act. Rather, it is generally understood to be information that is considered valuable but not necessarily a trade secret. Confidential information can come in the form of customer lists, business plans, financial data, personnel documents, marketing strategies, and more. The key difference between trade secrets and confidential information is that in order for information to qualify as a trade secret, it must be both kept confidential and provide a business value. The Virginia Trade Secrets Act also requires that the owner of the trade secret demonstrates a reasonable effort to maintain the secrecy of the information. With confidential information, on the other hand, there is generally no such requirement or enforcement.

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