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

And for business users connecting to OpenAI's API, the stakes may be even higher, as their logs may contain their companies' most confidential data, including trade secrets and privileged business information. —ArsTechnica, 4 June 2025

Proponents of the bill argue that noncompetes are necessary to protect trade secrets and other proprietary information. —Sam Peak, Sun Sentinel, 1 June 2025

The $198 billion behemoth Palantir Technologies accused startup Guardian AI and its founders—who are former Palantir employees—of stealing trade secrets to launch the company. —Danielle Chemtob, Forbes.com, 2 Apr. 2025

Another example is when trade secrets are lost, and the result is a market-shifting event. —Michael McCann, Sportico.com, 19 Mar. 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.