What is the difference between trade secrets and confidential information?

The difference between trade secrets and confidential information lies in the legal protections each one offers. In Washington, trade secrets are defined as “information, including a formula, pattern, compilation, program, device, method, technique, or process” that is both secret and financially valuable. Trade secrets are legally protected from being disclosed or stolen, by state and federal law, which means that companies can sue for damages if trade secrets are stolen or disclosed. Confidential information is also a form of protection for companies, but it does not have the same level of legal protection as trade secrets. Confidential information may include proprietary business information or customer data, but does not have the same level of legal protection as trade secrets. Companies may include confidentiality agreements within their contracts to protect confidential information, but damages may not be as extensive as those of trade secrets. To summarize, trade secrets are legally protected under state and federal law, while confidential information has less robust legal protection. Trade secrets must be secret and financially valuable, while confidential information may include proprietary business information or customer data. Companies are encouraged to use both trade secrets and confidentiality agreements to protect their information.

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What is the difference between trade secrets and confidential information?

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