TRADE SECRET LITIGATION AND ENFORCEMENT
CD: Could you provide an overview of why trade secrets are so important to many companies?
de Vrey: The protection of trade secrets covers a broad range of information. For example, it can refer to technological knowledge and commercial information. Now that big data is considered to be one of the most valuable ‘assets’ in commerce these days, the possibility for protection under trade secret law is valuable, as current intellectual property (IP) laws often do not provide sufficient protection. Trade secrets can be a highly valuable asset to a company. Trade secrets support the innovation ecosystem by protecting process, product, market and organisational innovations. In contrast to other IP rights, trade secrets do not involve disclosure. The period of protection is as long as secrecy is maintained. Using trade secrets is usually cheaper than using IP rights because trade secrets do not have to be registered. Registering IP rights is usually a very costly process. This can be a huge asset for small and medium-sized enterprises (SMEs) that do not always have the money for patent applications, for example.
Pak: Trade secrets are often referred to as the ‘crown jewels’ of a company and there is a reason for that. Most trade secrets are developed through extensive research that comes at a significant cost both in terms of time and money. And once that time and money are invested, those trade secrets can give companies a real competitive edge – a secret manufacturing process, technology blueprint, computer source code or other information that competitors are not aware of and cannot benefit from.
Jul-Sep 2023 issue
CMS
Latham & Watkins LLP
Quinn Emanuel Urquhart & Sullivan, LLP
Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates