What is a trade secret? | Franchise Law Blog

What is a trade secret?

A trade secret can be defined as business information that derives independent economic value. A trade secret is something that is meant to stay undisclosed. When a trade secret is leaked‚ other people could potentially benefit from its financial value.

This is why a trade secret is usually considered to be classified information. A trade secret may be a formula‚ recipe‚ process‚ specific product design or other business information that is not public knowledge. Because trade secrets provide economic benefit to a business or a corporation‚ they are protected by the Uniform Trade Secrets Act.

Under the Uniform Trade Secrets Act‚ anyone who steals‚ misappropriates or unlawfully disseminates a trade secret may be punished under U.S. law. What this means is that if someone has stolen or misappropriated your classified business information‚ then you may choose to file a lawsuit and pursue financial damages. Under the Uniform Trade Secrets Act‚ a violation may be punishable by fines of up to $500‚000 or imprisonment of up to 15 years.

Related Articles:

Category: Start a Franchise

Let's Talk

With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your brand. Click on the button below or call us at (800) 976-4904.

Let’s Talk

With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.

Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.

An attorney client relationship is not established by submitting this initial contact information.

closeIcon