Module 4 - How to Obtain and Protect Your IPRs in the United States
Lesson 6: Other Means of Protecting IPRs in the United States
Reading time ~2 minutes
Unlike copyrights, trademarks, and patents, there is no procedure for registering trade secrets in the United States. There are, however, many steps that you can and should take to ensure that your trade secrets are protected.
In the United States, protection of trade secrets is governed by state law rather than Federal law.
Non-Disclosure Agreements
A nondisclosure agreement (also called an NDA or a confidentiality agreement) is a contract in which the parties promise to protect the confidentiality of secret information that is disclosed during employment or another type of business transaction. If you make a nondisclosure agreement with someone who uses your secret without authorization, you can request a court to stop the violator from making any further disclosures and you can sue for damages.
Because trade secret protection is lost when secrecy is lost, companies must make concerted efforts to prevent their proprietary business information from becoming public. Some of the ways companies can protect trade secrets are:
- Mark documents and data that contain trade secret information "confidential."
- Limit the number of people who know the information and have access to confidential documents and data.
- Ensure that no one person knows all the confidential information.
- Restrict access to the information (keep it locked in a secure place; use computer encryption, passwords, and network security).
- Have the people who know the information agree in writing not to disclose it (by signing nondisclosure agreements).
- Include treatment of confidential and trade secret information in employee manuals.
You have now completed the lesson on protecting trade secrets in the United States.
- If you wish to learn about protecting your trade secrets abroad, select Module 5 from the menu on the top left of this screen.
- If you would like to read about other steps you can take to protect your intellectual property rights in the United States, continue with this module.