What is the concept of “trade secrets” and how can they be protected against unfair competition?

The concept of “trade secrets” comes from the area of unfair competition law. Trade secrets are information or knowledge that are not known to the general public and give a competitive advantage to the person or business that possess it. Examples of trade secrets include formulas, patterns, devices, and processes that allow a business to have a unique product or service. In Massachusetts, trade secrets are protected by the Massachusetts Uniform Trade Secrets Act. This Act states that any owner of a trade secret has the right to prevent another person or company from improperly using or disclosing the trade secret. A court may award damages to a trade secret owner if the use of the secret causes economic harm due to the theft of the secret or the wrongful disclosure of the secret. The Unfair Competition Law in Massachusetts also states that a business can take legal action against a competitor if the competitor has acquired the trade secret unlawfully, such as by theft or by improper means. This type of action is known as a misappropriation claim. To protect a trade secret, a business should consider implementing security measures to keep it safe from potential theft and keep the knowledge in-house. As part of the security measures, the business should have systems in place to limit access to the trade secret and establish procedures for keeping the information secret. The business should also consider having employees and contractors sign non-disclosure agreements in order to prevent wrongful disclosure.

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What is the concept of “trade secrets” and how can they be protected against unfair competition?

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