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.

A trade secret may be the process for making a product, a business document, a secret formula or just about anything that the business runs on. The trade secret is the very life line of the company. It should not be confused with patents. Patents are not secrets and they are used to keep information away. However, a trade secret is highly safeguarded information.

For example companies like Coca Cola, Pepsi, KFC, McDonald’s and various pharmaceutical companies have their trade secrets. Chemical formulae in pharmaceutical companies are kept as trade secrets until the product is revealed. However, there are some trade secrets which are never revealed and some people get to know after using the product. Some companies use the trade secret before launching the product so that the consumers keep anticipating them. Once the product is launched, the trade secret is out. However, the secret recipe for KFC is a trade secret as long as the business runs. It will never be divulged because the USP for the product will be lost if people get to know how it is made. They will start making it at home and stop coming to the fast food joint for it.

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What Is A Trade Secret

Business Laws :

Elements-Of-A-Trade-Secret      Trade secret is the type of information which belongs to a certain company and has to be kept confidential. It could be the very principle that the business runs on it is basically the type of information which contains the know how of the business model and is not known publicly and if known can be misused or used widely. It could be technical information, data, and secret recipes for food and beverage industries, drawing, financial processes and innovations. More..




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