Have a secret formula or a special sauce integral to your business?
WHAT ARE TRADE SECRETS?
Trade secrets involve information that is not reasonably accessible to the public and has commercial value in order give a business a competitive edge. Examples of trade secrets include formulas, recipes, patterns, data and processes.
Inventors sometimes use trade secrets as an alternative to patents or industrial design.
A trade secret can be further defined as:
"any information that
(a) is not generally known in the trade or business that uses or may use that information;
(b) has economic value from not being generally known; and
(c) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.” [1]
Canada does not file or register trade secrets. Individuals can protect their trade secrets through confidentiality or through non-disclosure agreements with employees, contractors, or suppliers. Trade secrets do not provide for a formal protection process, but rather rely on confidentiality.
In Canada, trade secret theft and misappropriation will become a criminal offence which can potentially be punished by imprisonment. [1] To take maximum advantage of these changes to Canadian law, you need to be able to identify your trade secrets specifically, and be able to show that it was kept confidential at all material times. It's better to take steps to guard your trade secrets proactively rather than reactively.
Innovate LLP can help you with the following services to protect your trade secrets:
1) IP mining sessions
2) Identification of trade secrets.
3) Creation of trade secret register/database.
4) Review of relevant agreements such as:
(a) non-disclosure agreements,
(b) employment agreements,
(c) contractor agreements, and
(d) professional service agreements
If you have questions about protecting trade secrets, please contact us.
[1] Section 391 of Criminal Code [https://laws-lois.justice.gc.ca/eng/acts/C-46/page-84.html?txthl=secret+trade#s-391]"