![]() Further, unlike patents, it is perfectly acceptable for competitors to dissect a trade secret and discover how it is made through reverse engineering. Once the know-how is made public, through disclosure or any other means, it is unlikely that trade secret status can ever be restored. ![]() The other side of the coin, however, is that trade secret protection can be lost in an instant. The whole world would have thereby learned Coke’s secret recipe over a century ago. If John Pemberton had merely patented Coca Cola, assuming the formula was deemed patentable at the time, he would have had to disclose the ingredients during the filing process. That is how Coca Cola has been able to keep ” Merchandise 7x” – the classified ingredients that gives Coke its unique taste – out of the hands of competitors all these years. As long as the trade secret remains secret, the protection will not expire. While patents generally last up to 20 years, and copyrights generally last up to 100 years, a trade secret can potentially last forever. Advantage #2: Trade secret protection can last indefinitely If confidentiality can be maintained, the idea is likely a valid trade secret. ![]() Whether or not trade secret status will be afforded a concept largely rests on whether or not the information can be readily ascertained by end users. ![]() , as long as a patentable idea is kept secret, the idea itself con constitute information that is protectable by trade secret law. As the California Supreme Court noted in its May 2014 decision in Altavion, Inc. And even where software is eligible for a patent, it may still qualify for trade secret protection. Therefore, going forward, it may be wise for engineers to consider the option of obtaining trade secret protection for their software designs so as to avoid any such uncertainty.Īs long as source codes and algorithms have value and are kept confidential, courts have held that they can be protected as trade secrets. Understandably, this ruling has raised concerns that many other existing software products may now have their patents invalidated. CLS Bank International, holding that if a method or process is drawn to an abstract idea, it will not be transformed into a patent-worthy invention simply because it is implemented with a computer. In June, 2014 the Supreme Court issued its decision in Alice Corp. Advantage #1: Unlike patents, trade secrets can cover “abstract ideas” Trade secret protection allows the owners of these well-known products to not only preserve their IP rights, but also to enjoy certain advantages that a patent may not provide. Famous trade secrets include Google’s proprietary search algorithm, the New York Times “Best Seller List” rating system, the chemical formula for WD-40, and the recipes for such famous foods as Twinkies, Thomas’ English Muffins, and Mrs. Typically, trade secrets cover things like customer lists, recipes, formulas, software or unpatented (but not necessarily un-patentable) inventions. In short, if the information in question can be used to gain an economic advantage over one’s competition because the competition doesn’t know it, it probably qualifies as a trade secret. A trade secret can be comprised of almost any valuable non-public information, including a process, compilation, device or technique. Trade secrets may be a viable alternative, as this type of intellectual property allows for the protection of many types of information that do not qualify as patentable subject matter. Just because your creation does not qualify for a patent, does not mean that it cannot be protected at all. If you are an entrepreneur who has been told that your invention is ineligible for a patent, do not give up hope. *This article first appeared in Inside Counsel Magazine on September 18, 2014: Trade secret protection allows the owners to enjoy certain advantages that a patent may not provide ![]() The Top 4 Advantages of Trade Secret Protection ![]()
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