Intellectual property "trade secrets" help maintain business advantage

In today's fiercely competitive business environment, trade secrets act as a secret "weapon", helping businesses create advantages, protect intellectual property and maintain a leading position in the market.

The secret "weapon" of businesses (Illustration photo).

Trade secrets are information that is of great economic value to a business because it is not publicly available and is protected by reasonable confidentiality measures. This information can include manufacturing formulas, business processes, customer data, marketing strategies, and unpatented technologies. Unlike patents, trade secrets do not have a specific term of protection and can be maintained indefinitely if properly protected.

Trade secrets play an important role in maintaining a competitive advantage for businesses. When a company possesses proprietary information, it can protect unique manufacturing processes, helping to maintain product quality. Preserve customer data and business strategies, preventing competitors from exploiting them. Optimize research and development (R&D) without worrying about information leaks. Avoid the cost and time of patent registration, because trade secrets do not require information to be made public.

Trade secrets help businesses differentiate themselves from their competitors, offering unique products, services, or more efficient work processes. They protect valuable information that cannot or should not be patented, while also being cost-effective compared to investing in expensive patents. Trade secrets help businesses maintain market leadership by keeping important information private. On the other hand, if a business chooses to patent, it must disclose confidential information and is only protected for about 20 years.

Regarding the procedure for protecting trade secrets, unlike patents, trade secrets are protected without registration - that is, without any procedures. Accordingly, trade secrets can be protected indefinitely or for as long as the information remains confidential.

There are a number of conditions for information to be considered a trade secret. Compliance with these conditions can make trade protection more difficult and expensive than it would otherwise be. These conditions may vary from country to country, but in general, according to Article 39 of the World Trade Organization's TRIPS Agreement, the information must be secret (i.e. not widely known or readily accessible to those who normally deal with it); It must have commercial value because it is a secret; and The owner must take reasonable steps to keep it secret (e.g. through confidentiality clauses in employment contracts, confidentiality agreements, etc.).

To protect trade secrets, businesses can develop an internal security policy by clearly defining what information needs to be protected and establishing a management process. Signing non-disclosure agreements (NDAs) with employees, partners and suppliers to commit to not disclosing confidential information. Along with that, limit access by only providing necessary information to those directly responsible. At the same time, use security technology such as data encryption, system access monitoring and enhanced network security to protect trade secrets. In addition, businesses should also build a corporate culture and educate employees to raise awareness of the importance of protecting trade secrets.

If businesses do not take appropriate safeguards, they may face a number of risks, including losing their competitive advantage when competitors can copy or improve their products based on the leaked information. Financial losses when important information is stolen can be significant. Legal issues can arise if employees or partners misuse confidential information, leading to lengthy legal disputes.

The Coca-Cola formula is one of the world's most famous trade secrets, as the company kept its soft drink formula a secret for over 130 years without patenting it. Another notable example is McDonald's Big Mac sauce recipe, which is also protected as a trade secret. This builds the brand and creates a monopoly in the business, maintaining its leading position.

Trade secrets are intangible assets that are vital to the success and sustainable development of a business. Protecting this information not only helps businesses maintain a competitive advantage but also ensures safety against market risks. By implementing appropriate security measures, businesses can maximize the value of trade secrets and thrive in the modern business environment.

Source: https://baodaknong.vn/tai-san-tri-tue-bi-mat-thuong-mai-giup-duy-tri-loi-the-cho-doanh-nghiep-243633.html