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

Business leaders should assume that consumers can easily challenge everything and that even trade secrets can become public knowledge. —Wayne Elsey, Forbes.com, 28 Apr. 2025

Once hired, the impostor can install malware to demand ransom from a company, or steal its customer data, trade secrets or funds, according to Balasubramaniyan. —Hugh Son, CNBC, 8 Apr. 2025

Companies have long used nondisclosure agreements in different contexts to protect trade secrets, confidential data and intellectual property. —David W. Chen, New York Times, 8 Apr. 2025

Context: NDAs are commonly used in business to protect trade secrets and confidential information, but critics argue they are sometimes misused to cover up criminal behavior. —Naheed Rajwani-Dharsi, Axios, 20 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.