What is a trade secret?

A trade secret is any secret information used by a business to obtain a competitive advantage over those who do not know it.  This information could be a formula for a chemical compound, a manufacturing process, a pattern for a machine or other device, or a list of customers. The formula for Coca-Cola is protected as a trade secret.

Is a trade secret property?

Yes. A trade secret is one type of intellectual property. Trade secrets are normally governed by state laws, rather than federal law. There is a Uniform Trade Secrets Act that has been adopted by many states.

Does the university have trade secrets?

It would be possible, but not probable. The emphasis of the university is to disseminate information to the public. However, the university could protect information as trade secret if the information is not generally known to competitors, nor readily ascertainable by proper means by competitors, and the university takes reasonable steps to keep it secret. Access to trade secrets should only be to those individuals needing to know the information to perform their jobs. Otherwise, any disclosure should only be under a secrecy or confidentiality agreement.

Are there differences between protection of intellectual property as a trade secret and a patent?

Yes, there are four main differences:

• Patents are of a predefined, limited duration while a trade secret could have unlimited duration. However, you cannot protect a trade secret that becomes common knowledge as a result of independent invention or reverse engineering.
  
• Some inventions cannot be protected at all as trade secrets because anyone could ascertain the trade secret upon its commercial sale.
  
• Patents can be enforced against subsequent independent inventors, while trade secrets cannot.
  
• To be patented, an invention must meet a strict non-obvious standard. This is a higher standard than some states require for a trade secret. In some cases, a trade secret can be only marginally removed from what is common knowledge.

To rely on trade secret protection over patenting, you should have a high degree of assurance that you can protect the secrecy of the invention during commercialization and sales. You should also feel secure that a competitor could not independently arrive at the invention.