Trade Secret

A trade secret is competitively advantageous information not a matter of common knowledge in the field or trade having some recognizable value and degree of definiteness with regard to which reasonable steps have been taken to maintain its confidential or secret nature. Among the things that can be trade secrets are a formula, pattern, compilation, program, device, method, technique, or process. In essence, a trade secret can be almost any information that derives independent economic value from not being generally known or readily ascertainable. In sharp contrast to patents, copyrights and trademarks, which are all federal-based forms of intellectual property, trade secret protection originates and is primarily maintained through state law. Trade secret protection stems from the common law and dates back to the 1800's. Today, every state recognizes some form of trade secret protection and most states have legislation that specifically recognizes trade secrets, though others still rely solely on common law principles. Virginia is one of the many states to have adopted a version of the Uniform Trade Secrets Act, which has helped create a more uniform body of law in this area.Trade secrets often protect valuable technical information that cannot be sheltered under other forms of intellectual property law. For example, trade secrets may protect ideas that offer a business a competitive advantage, thereby enabling a company to get a head start on the competition, keep competitors from learning that a product or service is under development and from discovering its functional or technical attributes, or protect valuable business information such as marketing plans, cost and price information and customer lists.

The importance of protecting trade secrets cannot be underestimated. Proper safeguards must be in place to protect trade secrets and other confidential and proprietary information from departing employees and competitors without sacrificing value and efficiency in the work place.

Woods Rogers PLC advises clients on the protection of trade secrets and other confidential and proprietary information through the use of confidentiality, nondisclosure and noncompetition employee agreements, and technology license agreements. In addition to drafting such agreements, our representation extends to trade secret litigation. Our attorneys are familiar with the differing states’ laws regarding the enforceability of confidentiality agreements and post employment non-competition agreements, and have been successful in enforcing and preventing the enforcement of such agreements. In the absence of a written agreement, our attorneys also have been successful in obtaining and resisting judicial protection for trade secret information.