Definition

Trade Secret

A form of intellectual property protection covering formulas, processes, designs, or business information that provides competitive advantage and is actively maintained in secrecy. Unlike patents, trade secrets have no expiration date and require no disclosure — protection lasts as long as secrecy is maintained. The legal risk: if a trade secret leaks because the holder failed to implement adequate security measures, there is no legal recourse. Coca-Cola's formula is the canonical example: estimated to be worth more than any patent could provide, kept in a safe with access restricted to two people. Ophir's framework: choose trade secret when the invention cannot be reverse-engineered and you can operationally guarantee confidentiality.

From the episode “How Do I Protect My Idea?”

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How Do I Protect My Idea?

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