Trade Secret Basics
What are 'trade secrets'?
Trade secrets generally protect confidential information. Trade secrets will vary from state to state. Each state has a different variation on what's required in order to prove or establish that you do in fact have a trademark. But generally you have to maintain the confidentiality of proprietary information and also show that you can derive some kind of economic value from that proprietary information.
Does the federal government recognize trade secret protection at all?
The federal government does indeed recognize trade secrets and there are statutes that involve it. However, there is no particular filing procedure with the government or the United States Patent Framework Office regarding trade secrets. Rather, each state has their own set of rules and statutes regarding trade secrets.
What is a 'non-disclosure agreement'?
A non-disclosure agreement also may vary from state to state. They're going to have a little different wrinkles to it depending on the state you're in. But generally you want to state what it is that you're protecting in a non-disclosure agreement. You can do that in the actual non-disclosure form, or as an attachment to it. Also you want to have provisions in there, saying that the person who's signing it cannot utilize this information in a manner which you prescribed. Also, if there is a dispute within your non-disclosure agreement, what's very important is that you set forth what are the remedies and how you're going to mediate the situation whether its a state court or arbitration.
Can trade secret rights be transferred to another party?
Trade secret rights can be transferred to another party assuming that they maintain the confidentiality and all the measures to keep a trade secret.
