What is the meaning and scope of trade secrets
Trade secrets refer to technical information, business information and other commercial information that is not known to the public, has commercial value, and for which the right holder has taken corresponding confidentiality measures.
According to the definition of trade secrets under Chinese law, its scope is divided into two categories:
1.Technical information. It refers to technical information, data or knowledge that is produced based on experience or skills and is applicable in practice, especially in industry. It includes chemical formulas, process flows, unpatented designs, technical secrets, etc.
2. Business information. It refers to confidential business management methods and information and intelligence closely related to business management methods. It includes management methods, corporate marketing strategies, customer lists, supply intelligence, etc.
Trade secrets include secrets in the production field and secrets in the commercial field. From the perspective of commercial enterprises, the understanding of the scope of trade secrets seems to be broader and more specific, mainly covering the following aspects:
1.Product. It refers to a product that is developed by the company itself and has commercial value. Before it is patented, it can be called a trade secret. Even if the product itself is not a trade secret, the ingredients and methods of composition of the product may become trade secrets.
2. Formula. Industrial formulas are a common form of trade secret. The formulas and chemical synthesis of many foods, the exact ingredients of cosmetics and the proportions of various contents are valuable trade secrets. For example, the formula of "Coca-Cola" beverage is famous all over the world as a trade secret.
3. Process procedure. It refers to a number of equipment that, through a specific combination, can become a highly efficient process. This process may become a trade secret.
4. Machinery and equipment and their improvements. In the market, equipment purchased publicly through normal channels cannot be regarded as a trade secret. However, if the company improves it in a unique way, it will be more productive or have more uses. Then, this improvement can be regarded as a trade secret.
5. Research and development documents. How a company records its research and development activities in documents is also a trade secret. Design blueprints, drawings, computer data, experimental results, and designs that specifically indicate the development process all fall into this category. Even documents and records of failed experiments also fall into this category and must not fall into the hands of competitors.
6. Communication. A company's general correspondence is not a trade secret because it is not an object of protection. However, some specific communications are related to the company's business activities and have a bearing on the overall situation. If it falls into the hands of a competitor, it will be of great help to the other party. Such communications are regarded as trade secrets.
7. Internal company documents. The company has many documents that are important to all aspects of the company's business activities and should be included in the scope of trade secrets as much as possible. For example, a company's procurement documents record the company's actual costs for purchasing key supplies or services. If competitors see this document, they can deduce the company's pricing for certain products, which is very helpful to them. Such documents should be included in the scope of trade secrets. Even a piece of computer paper can be considered a trade secret if it is marked with information indicating the company's inventory at any one time.
The above knowledge is the answer of the editor of Legal Savior Network to the question "What is the meaning and scope of trade secrets". If readers need legal help, Welcome to Legal Savior Network for legal consultation.
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