Question
Where's the line between general skills and trade secrets?
I want to protect my business secrets, but people also gain experience on the job. What counts as general skills they can take with them, and what counts as protected trade secrets?
Answer
Employees and contractors can take their general skills and experience with them. They cannot take your protected trade secrets.
The key difference is whether the information is general knowledge or specific, secret business information that gives your company a competitive edge.
What counts as general skills and experience?
General skills are abilities and knowledge developed through work. These usually include:
- Using common software or tools.
- Improving sales, marketing, or management skills.
- Understanding general industry practices.
- Gaining experience working with customers or teams.
These are part of a person's professional growth. They are not owned by the business.
What qualifies as a trade secret?
Trade secrets are specific business details that provide economic value because they are not generally known and are not easy to recreate.
To qualify, the information must:
- Have real economic value because it is not publicly known.
- Be protected with reasonable steps to keep it secret.
Examples include curated customer lists, detailed pricing strategies, proprietary workflows, internal systems, formulas, or unique methods.
Courts look at how you treated the information. NDAs, limited access, confidentiality labels, and clear policies help protect trade secret status. If information is freely shared or poorly guarded, it may lose protection.
What to do next
- Identify what information gives your business a competitive edge.
- Use NDAs and clear confidentiality agreements.
- Limit access to sensitive materials.
- Treat valuable information consistently as confidential.
What to consider in your specific situation
Whether information counts as a trade secret may depend on:
- How specific and valuable the information is.
- Whether it's publicly available or easy to recreate.
- What steps you take to protect it.
- Who has access and why.
- Whether NDAs or confidentiality clauses are in place.
- The potential harm if it's misused.
Thinking through these points can help you protect what matters without overreaching.
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 while respecting fair competition.

At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.
Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.

Need help navigating legalese in a contract?
Work for hire, usage rights, and other intellectual property clauses rights can be confusing — and getting them wrong can cost you. As a Rocket Lawyer member, you’ll have support at every step:
- Rocket Copilot Q&A for instant legal information
- Ask a Legal Pro for human responses within a business day
- Document insights, Contract Review, and other smart legal tools
Get legal confidence for less than the price of your daily coffee.
Explore more about intellectual property and confidentiality-related clauses

Explore more about trade secret protection
Trade secrets include valuable business information that isn’t publicly known, like processes, formulas, or client lists. These questions address how businesses can protect trade secrets and what happens if they’re exposed.
- What qualifies as a trade secret for my business?
- Do I need to register a trade secret to protect it?
- How do I legally protect a trade secret in my business?
- What's the difference between trade secrets and confidential information in contracts?
- Can former employees or contractors use what they learned at my business?
- Where's the line between general skills and trade secrets?
- How do I prove something was a trade secret in a dispute?
- Explore more questions about intellectual property and confidentiality-related clauses

Explore Rocket Lawyer solutions that can help you move forward
Whether you’re drafting agreements, reviewing contracts, or starting a business, Rocket Lawyer offers expert support to make legal tasks easier and more affordable.
Disclosures
- This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.