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ARTICLE · 11 FEBRUARY 2025

What Is A Trade Secret?

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Trade secrets have a well-established legal definition.

United StatesIntellectual Property
Charles Dresser
Charles Dresser
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Trade secrets have a well-established legal definition. This article (1) describes the three key elements of a trade secret; (2) provides some examples of secrets that do not fit the legal definition; and (3) explains how a trade secret can represent both a property and a contract right.

Legal Definition

The Federal Defend Trade Secrets Act (DTSA), 18 U.S.C. § 1839(3), defines a trade secret similarly to the Uniform Trade Secrets Act (UTSA), which is enacted in 49 states (New York uses the Common Law definition of trade secret). This definition of a trade secret is also been required by The Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. Accordingly, the legal definition of a trade secret is non-controversial around the world.

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