Do trade secrets expire?

A: Unlike patents, which have an expiration date, trade secrets could indefinitely carry on.

An advantage to a trade secret is that if a business does not qualify for a patent or trademark, the intellectual property can be protected by trade secrets. Trade secrets also have an advantage in that there are no licenses or renewals to worry about.

Despite these advantages, there is less formal protection given to trade secrets. Unfortunately, trade secrets can be broken. It is very difficult to prosecute someone for violating a trade secret.

Although there are inherent risks associated with trade secrets, there are also ways to protect trade secrets, including: 

• Non-compete contracts;
• Non-disclosure contracts;
• Uniform Trade Secrets Act; and
• Economic Espionage Act of 1996. 

Employees who sign contracts and then violate them are subject to heavy penalties and payment of damages. The federal protection offered by the Uniform Trade Secrets Act and the Economic Espionage Act includes imprisonment and steep fines.

To better understand trade secrets and how you can protect yours, contact a business and franchise lawyer.

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