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Trade Secrets, strategy every step of the way
Trade Secrets, strategy every step of the way

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All companies generate various types of information, the most important being information that, given its content, is linked to the company’s competitive advantages.

How can you protect that information to avoid the loss of competitive advantage? In many cases, by keeping it a secret.

Trade Secret, a strategic asset

Trade secret is one of the most used forms of protection today for protecting innovations, and many times it is the only way to protect valuable non-technical information. Furthermore, it is a streamlined and competitive means of protection in all types of organisations, since it is a tool that does not require registration, is not subject to judgment or evaluation by any institution or government authority, and has an immediate effect (since there are no waiting times for the protection to become effective).

How is Trade Secret protected?

First of all, it is essential to understand the type of information we have and how it is processed; moreover, we must identify its nature and content, since whether or not said information constitutes a Trade Secret will depend on this.

A trade secret can be information of any nature (technical, economic, financial, organisational, methodologies, etc.), as long as it meets the following requirements:

  1. It is secret.
  2. It has current or potential business value.
  3. It has been subject to reasonable protection measures by its proprietor in order to maintain its secret nature.

What does the Trade Secrets Law establish?

The Trade Secrets Law only protects those companies that prove that they have adopted specific measures to maintain the confidentiality of the information or knowledge that is intended to be protected by this concept. In other words, although the use of trade secrets provides great flexibility and advantages to those who know how to use it properly, it is also true that trade secrets have a certain fragility: they can be destroyed if they are not handled with due caution by their proprietor.

The Trade Secrets Law establishes the unlawful act of the unauthorised disclosure, obtaining or use of information related to trade secrets. Moreover, the criminal code also punishes the theft of business secrets with imprisonment . In the event of a breach of trade secrets, the affected company may sue the offender, request the cessation of activities that entail a breach of its trade secrets, claim damages, etc. Ultimately, the aim of this law is to provide companies that choose to protect their innovations in this way with a very powerful range of legal actions to defend their interests and ensure that other competitors do not illegally take advantage of the effort invested in improving their products and services.

What does a Trade Secret project offer?

Working with a Trade Secret project will give your company flexibility and agility to adapt to a market in which the life cycle of innovations is ever-shorter.

Trade secret, unlike the exclusive rights generated by a patent, trademark, etc., is based on the ability to maintain control over the information it consists of, which is why a de facto monopoly is often referred to. This means that its proprietor will be the one who obtains the benefits from the secret, provided that they maintain their ability to control the information, deciding who uses it and for what purpose, and avoid making disclosures.

Undertaking a trade secret project:

  • It favours the emergence of more business assets.
  • It makes it possible to manage risks derived from the handling of third-party information and the loss of one’s own information.
  • It strengthens the company’s legal position in the event of conflict.
  • It increases the company’s value.

Having a Trade Secret Protocol in your company will lead to an improvement in its competitive positioning. Allowing your company to take ownership of strategic assets that will accompany it every step of the way.

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