TRADE SECRETS
Group 8
Bernadeth C - Franchel K - Gabriella J - Gladys G -
Gwendelyn H - Jessica N - Jessica V
DEFINITION
Intellectual property rights
on information that is
confidential
Ownership of a formula or
secret method/recipe
ITEMS THAT PROTECTED BY TRADE SECRETS
Business Plans
The detailed business plans, financial
projections, and market entry strategies
developed by a company may be treated as
trade secrets
Manufacturing Processes Formulas
The specific steps The exact combination of
and techniques ingredients is known only to a
involved in the few key individuals within the
process company.
ITEMS THAT PROTECTED BY TRADE SECRETS
Customer Lists and Preferences Designs
Database of customer information, The design specifications and unique
including preferences, buying habits, features of a product. For example,
and contact details, which is cutting-edge electric car developed
considered a trade secret. by an automotive company.
Cost and Pricing Information
The detailed breakdown of costs
and pricing strategies, including
supplier contracts and
negotiations, could be treated as
trade secrets.
REQUIREMENTS AND Independence
QUALIFICATIONS OF The information should
PROTECTED ITEMS derive independent
economic value
Secrecy Duration
Owner must ensure
Protected indefinitely as
confidentiality of the
long as they meet the
information in aims to not
criteria of being secret
let others benefit from it
Commercial Value
Examples include : Employment and
Customer lists Non-Disclosure
Manufacturing Agreements
processes Strengthen the legal
Formulas protection of trade secrets
Marketing strategies
TYPES OF
PROTECTION USED
FOR TRADE
SECRETS
PHYSICAL MEASURES FOR
PROTECTING TRADE SECRETS
According to the Statistical Analysis of Trade Secrets
Creating agreements, policies, procedures and records to establish document protection
Establishing physical and electronic security and confidentiality measures
Assessing risks to identify and prioritize trade secret vulnerabilities
Establishing due diligence and ongoing third party management procedures
Instituting an information protection team
Training and capacity building with employees and third party
Monitoring and measuring corporate efforts
Taking corrective actions and continually improving policies and procedures
(Jalil & Hassan, 2020)
PHYSICAL MEASURES FOR
PROTECTING TRADE SECRETS
Additional Measures Recommednation from World
Intellectual Property Organization (WIPO)
Educate employees about the importance of trade secrets and
communicate to them the policy and the program
Carefully decide and review periodically as to which employees “need to know or use” the
information and restrict access to trade secrets on a “need to know” or “need to use” basis
Apply physical and technological restrictions to access trade secrets’
Limit and monitor public access to buildings that house trade secrets
Mark “secret” or “confidential” all documents containing trade
secrets so as to avoid accidental or inadvertent disclosure
Sign confidentiality agreements with all relevant employees and also with outsiders
who in one way or another may get access to the company's trade secrets
(Jalil & Hassan, 2020)
WRITTEN DOCUMENT
Non-Disclosure Agreements (NDAs): legally binding contracts specifying terms for one
party to share confidential information with another. The receiving party commits to
keeping the information confidential, making NDAs crucial for protecting trade secrets
when sharing with employees, contractors, business partners, or third parties.
Information protected with NDA:
Customer -> major customers contact information and customer preferences
Financial -> specific financial information relating to any customer
Marketing -> processes, billing policies, pricing strategies, and advertising
techniques
Operating -> employee data and supplier information
Intellectual property -> patents, copyrights, trade secrets, and technologies
(Tanwir, R., F., M., & Hendrawan D., 2018; Investopedia, 2022)
MAIN
Do not expired
DIFFERENCES
No application or
approval process
Doesn’t provide a
monopoly over
information
INTELLECTUAL
PROPERTY
AUDIT
DEFINITION
Assesing the intellectual
property of the business to
identify risk & how to
manage those risks
REASONS TO CONDUCT
1. Provide a comparable report of total
input and output
2. Generating the nation's economic
strength and innovation in the future
3. Drive innovation and bring new
services and products to market
4. Main consideration when an
organization wants to go international
5. Play a big role in new product
development
(Gargate & Jain, 2012)
PROCEDURE
Collecting Information
The company's regular interaction internally and externally and its impact
Intellectual assets of the company
Preparing an Audit Plan
Include: purpose of the audit, scope of the audit, time schedule for the
audit, the audit team, the form of final audit report
Conducting an IP Audit
Identify all intellectual assets from the company and the problems related
to IP and prepare the checklist form
(Rastogi, 2010)
PROCEDURE
Review of IP Strategy of The Company
Include the documentation of all existing and developing technologies
Audit of Intellectual Assets Owned by the Organization
Important points: nature of organization, ownership, and restrictions, as
well as the legal status IP assets
Analyze the Information Collected
Convert into an Audit Report
(Rastogi, 2010)
Reference
Jalil, J. A., & Hassan, H. (2020). PROTECTING TRADE SECRET FROM THEFT AND CORPORATE ESPIONAGE: SOME LEGAL
AND ADMINISTRATIVE MEASURES. International Journal of Business and Society, 21(1), 205–218.
Gargate, G., & Jain, K. (2012). Intellectual property audit for efficient intellectual property management of an
organisation. Technology Management for Emerging Technologies (PICMET), 2012 Proceedings of PICMET ’12.
Hannah, D. R. (2005). Should I keep a secret? The effects of trade secret protection procedures on employees'
obligations to protect trade secrets. Organization science, 16(1), 71-84.
Hrdy, C. A., & Lemley, M. A. (2021). Abandoning trade secrets. Stan. L. Rev., 73, 1.
Rastogi, T. (2010). IP Audit: Way to a Healthy Organization. Journal of Intellectual Property Rights, 15.
Tanwir, R. F. M., Hendrawan, D. (2018) Use of Non-Disclosure Agreement as Legal Protection in Trade Secrets to
Investment Security. Central European Journal of International and Security Studies 12, no. 4: 536–546
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