It can be confusing to distinguish between confidential information and trade secrets – they’re different but some people incorrectly use the terms interchangeably. All trade secrets are confidential information, but not all confidential information are trade secrets. It’s like trade secrets are an elevated subset of confidential information.
Huh???
Confidential information is just that, secret information. It could be highly valuable or have low value. It’s just a secret.
Trade Secrets Defined
Trade secrets, on the other hand, are more narrowly defined. If you look at any statute or litigation case, you always see an official three-part definition.
Trade secrets are
- not generally known (secret);
- have value because of their secrecy; and
- the owner has taken “reasonable measures” to protect.
You’ll notice that there’s nothing about registering with the government, and “reasonable measures” is not clearly defined. These two things make trade secrets more interesting and also more challenging.
You’ll also notice that the three-part definition is super broad. Trade secrets can be related to technology (what patents also cover), but also include a wide array of business secrets like pricing models, M&A strategy, compensation plans, and QC/QA parameters. The scope of trade secrets is much broader than patents!
Tangibly’s SaaS platform allows you to easily catalog both your confidential information and your trade secrets and provides meta data to identify each. You can demonstrate “reasonable measures”, lower risk, and boost your valuation with Tangibly’s management tools and AI-facilitated insights. Contact Tangibly to learn more about these valuable assets!
