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

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

Some components, such as fragrance, are considered trade secrets, so manufacturers may not disclose individual chemicals, Evans said. —Kristen Rogers, CNN, 29 Nov. 2024

Yanjun Xu, 44, was convicted three years ago of conspiring to and attempting to commit economic espionage and theft of trade secrets. —Chris Boccia, ABC News, 27 Nov. 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.