Unique Trade Secret License Agreement Features

While there has been significant growth in worldwide patent applications filed and patents granted, much intellectual property continues to be protected as a trade secret. Fortunately, much like other forms of intellectual property, trade secrets can be licensed to generate revenue. There are some unique features in a trade secret license when compared to other forms of intellectual property licenses that need to be considered when drafting and negotiating such licenses.

Actual Protection

Given the secret nature of a trade secret it must actually be kept confidential to retain its inherent value (although nothing prevents a third party from independently developing the trade secret). This is a unique feature of a trade secret license. In other forms of intellectual property (IP) licenses the details of the IP are publicly known. The licensor will take steps and implement safeguards and measures to maintain the confidentiality of the trade secret. In cases where a