Trade Secret
Confidential business information that provides a competitive advantage and is subject to reasonable protection efforts.
Trade secrets can include formulas, processes, customer lists, business strategies, and other proprietary information. Unlike patents, trade secrets have no registration requirement and can last indefinitely — as long as they remain secret.
To qualify for legal protection, the information must derive economic value from its secrecy, and the owner must take reasonable steps to maintain confidentiality (like using NDAs and access controls).
Example
A restaurant chain's proprietary sauce recipe, known only to three executives and protected by strict NDAs.
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