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

Confidential work or business info: Proprietary data, client details and trade secrets are all no-nos. —Kim Komando, USA TODAY, 26 Dec. 2024

Imagine a foreign entity of concern, such as a non-state actor that poses a security or economic threat to the United States, financing a patent infringement case to gain access to valuable trade secrets of U.S. companies. —Christine McDaniel, Forbes, 6 Dec. 2024

Employees routinely enter customer and trade secret details. —Vinay Goel, Forbes, 12 Dec. 2024

For example, intellectual property theft — including theft of trade secrets — costs U.S. businesses between $225 billion and $600 billion annually. —Michael Slepian, eric Anicich, nir Halevy, Harvard Business Review, 2 Dec. 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.