Protection
A company can protect its confidential information through non-compete and non-disclosure contracts with its employees (within the constraints of employment law, including only restraint that is reasonable in geographic and time scope). The law of protection of confidential information effectively allows a perpetual monopoly in secret information - it does not expire as would a patent. The lack of formal protection, however, means that a third party is not prevented from independently duplicating and using the secret information once it is discovered.
Secret formulae are often protected by restricting the key information to one or two trusted individuals, such as the ingredients of Chartreuse liqueur. The drink has a unique taste created by use of 130 different herbs, and is known to only two of the monks at the monastery.
In the United States, trade secrets are not protected by law in the same manner as trademarks or patents. Specifically, both trademarks and patents are protected under federal statutes, the Lanham Act and Patent Act, respectively. Instead, trade secrets are protected under state laws, and most states have enacted the Uniform Trade Secrets Act (UTSA), except for Massachusetts, New York, North Carolina, and Texas. One of the differences between patents and trademarks, on the one hand, and trade secrets, on the other, is that trade secret is protected only when the secret is not disclosed.
Read more about this topic: Trade Secret
Famous quotes containing the word protection:
“Take away from the courts, if it could be taken away, the power to issue injunctions in labor disputes, and it would create a privileged class among the laborers and save the lawless among their number from a most needful remedy available to all men for the protection of their business interests against unlawful invasion.... The secondary boycott is an instrument of tyranny, and ought not to be made legitimate.”
—William Howard Taft (1857–1930)
“The protection of a ten-year-old girl from her father’s advances is a necessary condition of social order, but the protection of the father from temptation is a necessary condition of his continued social adjustment. The protections that are built up in the child against desire for the parent become the essential counterpart to the attitudes in the parent that protect the child.”
—Margaret Mead (1901–1978)
“After so many historical illustrations of the evil effects of abandoning the policy of protection for that of a revenue tariff, we are again confronted by the suggestion that the principle of protection shall be eliminated from our tariff legislation. Have we not had enough of such experiments?”
—Benjamin Harrison (1833–1901)