Do I need to register a trade secret to protect it?

When is information protected as a trade secret?

Information can qualify as a trade secret if:

• It has economic value because it is not generally known or easy to figure out.
• Your business takes reasonable steps to keep it secret.

If both are true, the information may be protected automatically. Protection can last indefinitely, as long as the information remains confidential.

How do you protect a trade secret without registration?

Because there is no filing system, protection depends on how you handle the information. Common steps include:

• Limiting access to sensitive information.
• Using passwords and security controls.
• Requiring NDAs from employees, contractors, and vendors.
• Including confidentiality terms in employment agreements.
• Labeling documents as confidential – though this, alone, doesn't establish trade secret protection without real security measures.

If you do not take reasonable steps to protect the information, a court may decide it is not a trade secret.

What to do next

• Identify valuable confidential information in your business.
• Limit who can access it.
• Use NDAs and written confidentiality agreements.
• Put security and internal policies in place to protect it.

What to consider in your specific situation

Whether your information qualifies as a trade secret may depend on:

• How valuable the information is to your business.
• Who has access to it and why.
• What security measures you've put in place.
• Whether NDAs or confidentiality clauses are used.
• How easy the information would be to recreate.
• How damaging disclosure would be.

Thinking through these points can help you decide what needs stronger protection.

Since every situation is different, consider getting tailored information through Rocket Copilot, a Legal Pro, or a trade secret review so you can protect your business information with confidence and clarity.