Your business trade secrets are crucial in giving your business a competitive edge over other players in the market. What information counts as a trade secret? Understanding the legal criteria related to this concern can help you protect your interests as a business owner.
In Pennsylvania, trade secrets are protected by the Pennsylvania Uniform Trade Secrets Act (PUTSA). PUTSA prohibits the misappropriation of trade secrets and provides remedies for trade secret owners who suffer damages from unauthorized disclosures.
The information must meet this threshold
In a nutshell, the economic value, secrecy and efforts to maintain confidentiality are the key factors when determining whether information qualifies as a trade secret. According to PUTSA requirements, the information must derive independent economic value from not being generally known or readily ascertainable by others who can benefit from its use or disclosure.
It must also be the subject of reasonable efforts to maintain its confidentiality. This may include using non-disclosure agreements (NDAs) and other confidentiality policies that make such information accessible only to those who need to know. Information may not qualify as a trade secret if your business does not take measures to keep it a secret.
Pennsylvania recognizes a broad spectrum of information as trade secrets, from customer lists to manufacturing processes, techniques and formulas. Identifying your business trade secrets and taking the necessary steps to keep them confidential can help safeguard your business against potential threats.
Do not take unnecessary risks
The legal framework surrounding trade secrets can be intricate, underscoring the need for tailored and informed guidance. Mistakes can have far-reaching consequences on the future and success of your business. If you are unsure about what business information qualifies as a trade secret or how to protect yours, seeking legal assistance can help you minimize the risks and maximize the security of your confidential assets.