What is classified as a trade secret?

A trade secret is defined as confidential business information that provides a competitive edge. This could include formulas, practices, processes, design data, or other business information that is not generally known or easily accessible. The key criterion for something to be classified as a trade secret is that it must offer some sort of economic advantage over competitors who do not know or use it.

The essence of a trade secret lies in its confidentiality; it must be deliberately kept secret to maintain its status. This is distinct from other types of information, such as publicly available data, which does not confer any competitive benefit because it can be accessed by anyone. Items like patentable inventions or public information about a product are not considered trade secrets because they are not protected through confidentiality or secrecy and may be disclosed to the public.

Thus, the classification of trade secrets focuses on the advantage gained through secrecy, distinguishing them from information that is openly shared, potentially damaging its competitive value.