Trade Secrets - Pros and Cons

Some advantages of trade secrets include:

• No pre-determined expiration date and indefinite life.  As long is the information meets the legal definition of a “trade secret”, the information continues to be a trade secret.  Just ask the good folks at Coca-Cola how long they expect to own its trade secret for a certain carbonated beverage.
•  Zero registration costs.
•  No duty to disclose to any government agency.
•  No registration required.
• Legal protections exist to resist and prevent disclosure in courts and other government filings.
• Broad - As long as the information meets the legal definition of a "trade secret", virtually anything can be a trade secret.

 Some disadvantages of trade secrets include: 

• Could be expensive to maintain secrecy.
• Requires vigilance to maintain secrecy. 
• Might be reverse engineered and lose protection.
• Can be patented by someone else who developed the relevant information by lawful means.
• Once the trade secret is public, it no longer qualifies for trade secret protection and anyone can use it.
• Easy to lose trade secret status (no longer a secret).
• Sometimes difficult to prove the information meets the legal definition of a trade secret.

 
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