Patents and trade secrets are extremely important assets for any company and are valuable tools for protecting inventions. But how do we decide whether it makes more sense to protect our invention by issuing a patent or keeping it secret? This article aims to outline the advantages of keeping an invention secret through trade secret protection so that its owner can maintain a competitive advantage.
In the first place, one of the reasons why some companies prefer to protect some aspects of their intellectual property through a trade secret rather than issuing a patent for an invention is because by keeping the innovation a secret one achieves tighter control over the innovation concerned (because the ability for companies to control exactly who has access to their most valuable information). This is because with patents, information is disclosed and thus made available to competitors.
Next, patents have a limited term: 20 years, while the term of protection provided by trade secrets can potentially last forever as long as the trade secret is kept secret. As long as the trade secret remains a secret, the protection will not expire. For companies that have long-term interests and own inventions that have longer lives and are not easily reverse-engineered, a protected trade secret will provide unrivaled protection twenty years from now. If Coca-Cola had applied for a patent for the invention when the company began selling the drink Cola, its recipe would have been open to the public long ago. Competitors could create generic versions of Coca Cola drink that cannot be distinguished from the original. As a general rule, if the invention is easily reverse engineered, then patent protection is the better option. In case the invention is not easy to reverse engineer, then trade secret protection may be the more advisable option.
Moreover, issuing and maintaining a patent for an invention is an expensive and lengthy procedure, while there are no registration and renewal fees for trade secrets. In the case of a trade secret, the investment for the preparation of the documentation for its protection is many times lower than the costs of issuing and renewing a patent for an invention. The costs of protecting a trade secret are reduced only to the preparation of the legal documents for its protection (Trade Secret Protection Agreement; Non-Disclosure Agreement (NDA); Internal Trade Secret Policy; A statement of assurance that confidential company information on the departing employee’s personal devices will be destroyed; A statement of assurance that the person to whom the trade secret has been disclosed is aware of the Internal Trade Secret Policy; A list of the people to whom the trade secret has been disclosed) and this happens extremely quickly (the preparation of the documents takes only a few days).
Finally, trade secrets provide protection for a wider variety of inventions because not all inventions are patentable.
Due to the many specifics to be considered when drafting the ducuments for protection of a trade secret trade secret, it is advisable to seek the assistance of a specialist experienced in this matter. The team of Krasimira Kadieva Law Firm will gladly assist you in drafting a trade secret protection agreement and the accompanying documentation, as in our practice we have repeatedly helped our clients to take the necessary measures to protect their trade secrets.
In order to provide a complete service regarding trade secret protection, our team has developed the service “Consultation and preparation of a trade secret protection agreement and accompanying documentation“.
The service “Consultation and preparation of a trade secret protection agreement and accompanying documentation” includes:
- Legal advice on trade secret protection;
- Preparation and submission of the following documents, namely:
- Trade Secret Protection Agreement;
- Non-Disclosure Agreement (NDA);
- Internal Trade Secret Policy;
- A statement of assurance that confidential company information on the departing employee’s personal devices will be destroyed;
- A statement of assurance that the person to whom the trade secret has been disclosed is aware of the Internal Trade Secret Policy;
- A list of the people to whom the trade secret has been disclosed.
- Assistance in negotiations with the other party.
If you would like to receive more information about the service “Consultation and preparation of a trade secret protection agreement and accompanying documentation” you can contact us on 00359 882 308 670 or by using the contact form on this website.
EACH CLIENT WILL RECEIVE A FREE E-BOOK CONTAINING ARTICLES WITH USEFUL INFORMATION ABOUT TRADEMARKS.
FOR YOUR NEXT ORDER OF ANY OF OUR SERVICES YOU WILL RECEIVE UP TO 15% DISCOUNT.
This material prepared by Krasimira Kadieva aims to provide information about advantages of protecting an invention as a trade secret. It does not constitute a legal opinion and cannot be interpreted as individual consultation on any concrete facts or circumstances. The advice of an intellectual property specialist should be obtained for specific questions and situations. For more information on the above-mentioned issues and individual consultations, please contact Krasimira Kadieva at 00359 882 308 670 or make an inquiry using the contact form of this website.