trade secret

noun

: something (such as a formula) which has economic value to a business because it is not generally known or easily discoverable by observation and for which efforts have been made to maintain secrecy

Examples of trade secret in a Sentence

Recent Examples on the Web

Exemption 4 of the FOIA protects trade secrets and commercial or financial information obtained from a person that is privileged or confidential, the letter explained. —Heidi Finley, Charlotte Observer, 12 Dec. 2025

Taiwan’s chip action Taiwan is invoking a national security law to protect the trade secrets of its homegrown chipmaker TSMC and has used it to indict a TSMC supplier for allegedly letting a former employee steal details about TSMC’s top chips. —Phil Wahba, Fortune, 10 Dec. 2025

And even if tracking the lapses were easier, a corporation exposing itself to collective criticism would risk revealing trade secrets to competitors, providing legal fodder to disgruntled users, or damaging its reputation. —Vauhini Vara, The Atlantic, 8 Dec. 2025

But companies are also not being completely transparent about how these data centers actually work, and for good reason — those are valuable trade secrets. —Reed Albergotti, semafor.com, 3 Dec. 2025

Word History

First Known Use

1825, in the meaning defined above

Legal Definition

trade secret

noun

trade se·​cret

: a formula, process, device, or item of information used by a business that has economic value because it is not generally known or easily discovered by observation or examination and for which reasonable efforts to maintain secrecy have been made

Note: Trade secrets are a form of intellectual property. Many states have enacted laws which create an action for damages or injunctive relief against misappropriation of trade secrets by improper means. Information contained in a patent is not protected as a trade secret.