What is the scope of trade secrets?

Trade secrets exist in all aspects of an enterprise and in all aspects of its production, supply and marketing; at the same time, trade secrets are constantly produced and destroyed in the enterprise, and their scope is very wide. If it is beneficial to the company and can win in the competition, the company can "Information" that is intentionally kept confidential and measures are taken to keep it confidential is a trade secret. Below, the editor of Legal Savior Network will tell you about the scope of trade secrets. Let’s take a look.

What is the scope of trade secrets

Business secrets can be divided into two categories Category: technical information and business information.

Technical information

Mainly includes: technical design, technology Samples, quality control, application testing, process flow, industrial formulas, chemical formulas, production processes, production methods, computer programs, etc. Trade secrets as technical information are also called technical secrets, proprietary technologies, non-patented technologies, etc., and are often called Know-How in international trade.

Business information

Mainly includes: development plan, competition plan, management know-how, customer list, supply, production and marketing strategy, financial status, investment and financing plan, bid document and minimum bid, negotiation plan, etc.

In addition, there are several easily overlooked trade secrets that need special explanation:

1. Process procedures: Sometimes several different pieces of equipment, although they themselves belong to the public domain, may become trade secrets if they are combined specifically to produce new processes and advanced operating methods. For example, in the process of producing high-quality steel parts, a company has a continuous casting process. This process is the most productive operation method discovered by employees who have worked in this casting process for many years, and this method has not been used by others. As far as is known, the process is a trade secret. Many technical know-hows fall into this category of trade secrets.

2. Improvement of machinery and equipment: Machinery and equipment purchased on the open market are not trade secrets, but they have been technically improved by the company's technical staff., making it more versatile or more efficient, then this improvement is also a trade secret.

3. Customer list: The customer list is a very important part of the trade secret. If the opponent knows it, the customer will be tempted or harassed, thereby hindering the company's success. of normal operations. The customer is the counterparty to the transaction and is originally public. Why can the customer list be considered a trade secret? This is because the customer list is not known to the public. It is not that the customer itself is secret, but the relationship between the operator and the customer. The specific transaction relationship is confidential. Other operators do not know that customers need this type of product or service. It takes a certain amount of time and financial resources to obtain customers. If this information is known by competitors, it will definitely be detrimental to the company.

4. Documents related to research and development: documents that record the contents of research and development activities. Such documents are business secrets. Such as blueprints, drawings, experimental results, design documents, notifications of technical improvements, best specifications of standard parts, inspection principles, etc., are all trade secrets.

5. Internal company documents: Documents related to various important business activities of the company are also business secrets. Such as procurement plans, supplier lists, sales plans, sales methods, accounting financial statements, distribution plans, etc. are all business secrets of the enterprise. If they are known to competitors, they will have adverse consequences.

6. Third-party business secrets: According to laws and agreements, the enterprise has the responsibility to keep confidential the business secrets of third parties, such as those learned during business cooperation. trade secrets of other companies. You must protect it like your own management trade secrets, otherwise you will need to bear corresponding legal liability once it is leaked.

The above is a relevant introduction to the scope of trade secrets. I hope it can help everyone. If you need to know more, please pay attention to the official website of Legal Savior Network and consult our Legal Savior Network lawyers online. We will serve you wholeheartedly.