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

While originally intended to protect trade secrets and sensitive company information, noncompetes were increasingly being used in low-wage industries to prevent employees from changing jobs. —Natalie Wallington, Kansas City Star, 26 Apr. 2024

There are still laws on the books that protect companies’ trade secrets. —Cathy Bussewitz, Fortune, 25 Apr. 2024

Companies generally use noncompetes to protect trade secrets and to avoid spending money to train employees who can hop over to a competitor. —J. Edward Moreno, New York Times, 24 Apr. 2024

Employers who use noncompetes argue that they are needed to protect trade secrets or other confidential information employees might learn in the course of their jobs. —Kate Gibson, CBS News, 24 Apr. 2024

Those opposed to the ban, including major businesses that use noncompete agreements, said the clauses are a key practice for companies to protect trade secrets and promote competitiveness. —Shelby Slade, The Arizona Republic, 24 Apr. 2024

The only exceptions allow for litigation in court over disputes involving intellectual property and trade secrets, small claims, and provisional remedies, like a preliminary injunction. —Ashley Belanger, Ars Technica, 6 Dec. 2023

Gong, 57, of San Jose, was charged Tuesday with theft of trade secrets, which carries a maximum penalty of 10 years in federal prison. —Minnah Arshad, USA TODAY, 8 Feb. 2024

Interestingly, Tata’s alleged behavior - breach of contract, misappropriation of trade secrets, and unfair competition - reads as eerily similar to Epic’s own alleged conduct in an early-2000s lawsuit with IDX, which the parties settled privately before proceeding to trial. —Seth Joseph, Forbes, 26 Feb. 2024

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.