What might be considered as a 'trade secret'?

A trade secret is characterized by information that provides a business with a competitive advantage and is kept confidential to maintain that edge. A confidential formula that gives a business a competitive edge encapsulates the essence of a trade secret because it is not publicly available, is known only to a limited group within the company, and has economic value due to its secrecy. This type of information is protected under trade secret laws, which prevent others from using or disclosing the secret without permission.

In contrast, a widely used marketing strategy lacks the distinctiveness required for trade secret protection because it is not secret; many businesses can employ similar strategies. A public patent cannot be considered a trade secret either, as patents are designed to provide public disclosure in exchange for exclusive rights, thus precluding the confidentiality aspect. Lastly, a common industry practice is generally known and accessible to the public, which nullifies its potential as a trade secret since it does not confer any exclusive competitive advantage.