What is a common characteristic of a trade secret?

A defining characteristic of a trade secret is that it must not be publicly disclosed. This confidentiality is what allows a trade secret to maintain its value and usefulness to a business. Trade secrets can include formulas, practices, processes, designs, instruments, or patterns that provide a competitive advantage. Because they are not disclosed, they are protected by law as long as reasonable efforts are made to keep them secret.

The requirement for non-disclosure distinguishes trade secrets from other forms of intellectual property, such as patents, which must be publicly disclosed to obtain protection. Trade secrets remain protected as long as they are kept confidential, highlighting the importance of implementing measures to prevent unauthorized access or disclosure. This characteristic is crucial for businesses that rely on unique processes or proprietary information to innovate and compete in the marketplace.