Advantages and disadvantages of protecting business secrets
To decide whether or not the protection of trade secrets, the company must consider the pros and cons of this strategy compared to other IP instruments.
In terms of benefits, a trade secret:
- No charge will be linked to registration
- Is not limited in time
- Takes effect immediately
- Does not require disclosure or registration with government
The disadvantages are:
- If the secret is embodied in a product, others may discover it and use it legally reverse engineering
- Protection is not granted if the secret is disclosed to the public
- The protection applies only in cases of acquisition, use or wrongful disclosure of confidential information
- This protection is weaker than that conferred by the patent
- If the secret is embodied in a product, others may discover it and use it legally through reverse engineering – see below
- A trade secret provides no protection against those that lead to the same idea independently confidential.
Therefore, a trade secret can be protected by a patent may be patented by a third party who has developed independently. Quite a difference compared to patents also protect the proprietor against those who develop the same invention independently.