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Business Information as a Trade Secret

Technology and information are critical to business today. Keeping that technology and information safely away from competitors is equally important. Accordingly, protection of trade secret information should be high on the list for every business. And as a informations, business information gives one an opportunity to obtain an advantage over his competitors who do not know or use it. Particularly, a business information which results from a cumulative knowledge of time and cost is as important as technical information. But the protection of business information is not enough as that of technical information. Having an eye on the importance of business information, this article will debate the protection as a trade secret. Business information can be divided as a client information, a product information and a enterprise one. As a client information, we can take an example of customer list. Customer list offers a business a competitive advantage, thereby enabling a company or individual to get a head start on the competition; it reduces time and cost such as marketing cost, and helps opening up a new market. Product information classified according to customer is protected as a trade secret. Data accumulated in the course of manufacturing can be protected as a technical or non-technical information. Furthermore, business strategy plan and market statistics study are protected as a trade secret. As a trade secret, business information should be an information that derives ①independent economic value (actual or potential) from not ②being generally known to the public or to any individual who can derive value from its disclosure or use. ③In addition, the owner of a trade secret must make reasonable efforts (under the circumstances) to maintain its secrecy. Not having to remain absolutely secret in order to be deserving of protection, the definition requires that the information not be generally known. And reasonable efforts to preserve secrecy should be employed. What is reasonable will vary depending upon the resources of the company claiming the trade secret and the value of the secret being protected. Finally, business information should have economic value and advantage over a competitor.