Trade Secret Statute of Limitations

A trade secret is information that provides a person or enterprise with an advantage over competitors. Protection of a trade secret does not require registration with a government agency. Federal and state laws protect trade secrets.

Protected Information

Trade secret protection applies to a variety of information, including formulas, methods, devices and techniques. For instance, the formula for a particular brand of cola beverage is a trade secret. The owner of a trade secret must take reasonable steps to protect the information from disclosure.

Rights

State law and the Uniform Trade Secrets Act allow the owner of a trade secret to prevent certain individuals from disclosing or stealing the information. It is illegal for a person to disclose a trade secret without authorization when bound by a nondisclosure agreement, when obtained from a person that does not have the authority to disclose the information or when acquired illegally. It is not against the law to work backward to discover a trade secret.

Statute of Limitations

A statute of limitations does not apply to trade secrets. Trade secret protection lasts for as long as the information remains undisclosed.

References

• Nolo: Trade Secret Basics FAQ
• HowStuffWorks: What is a Trade Secret and How is It Different from a Patent or Copyright