Trade Secret Definition  

Trade Secret is the type of information that a company keeps as a secret, so that they have an edge over their competitors. One of the biggest trade secret in the history of the business world is the formula for coca cola. Even today, people do not know why coke tastes different. Even the formula for Pepsi is a trade secret and despite being competitors, they do not taste the same though they are alike in several ways.

Also, Coke and Pepsi are known as die hard competitors. Even today, there is no love lost between them. The formula for KFC, or the Kentucky Fried Chicken, is also a trade secret. There are several look alike of the KFC but nothing close to the original.

In case the trade secret, which is their recipe for the product, if it is revealed, then the company and its product will not be unique anymore and they will be at sever losses. There are thousands of employees working for companies like Coca Cola, Pepsi and KFC, and despite that the trade secret has been safeguarded even today.

The company would limit the people to their processes only and do not give them exposure on the entire process. Even the employees do not know what the trade secret is. The person who has the information will have to sign a non disclosure agreement that is very stringent. The trade secrets are protected legally by the non disclosure agreement laws only. They are not protected by the intellectual property laws.

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Trade Secret Definition

Business Laws :

What-Is-A-Trade-Secret      A trade secret is a type of information that a company would like to safeguard in order to protect their business interests and also have an edge over their competitors. There are several companies that have trade secrets and have partners vying close to their positions. This is a common scenario in the food and beverage industry. More..




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