trade secret

noun

: something (such as a formula) which has economic value to a business because it is not generally known or easily discoverable by observation and for which efforts have been made to maintain secrecy

Examples of trade secret in a Sentence

Recent Examples on the Web

Appian accused the company of stealing trade secrets. —Ganesh Rao, CNBC, 15 Oct. 2024

Concerns about trade secrets and confidential information could lead to problems for you, your current employer, and the new company. —Amii Barnard-Bahn, Harvard Business Review, 11 Oct. 2024

In March, for example, a former Google engineer was charged with stealing AI trade secrets for a Chinese firm. —Seth Fiegerman, Fortune, 9 Oct. 2024

For instance, lack of understanding of the scope of contracts and regulations and improper data-sharing practices can expose the acquiring entity to loss of trade secrets, sensitive customer and employee information and other critical data post-acquisition. —Ilia Sotnikov, Forbes, 20 Sep. 2024

Word History

First Known Use

1825, in the meaning defined above

Legal Definition

trade secret

noun

trade se·​cret

: a formula, process, device, or item of information used by a business that has economic value because it is not generally known or easily discovered by observation or examination and for which reasonable efforts to maintain secrecy have been made

Note: Trade secrets are a form of intellectual property. Many states have enacted laws which create an action for damages or injunctive relief against misappropriation of trade secrets by improper means. Information contained in a patent is not protected as a trade secret.