Trade Secrets: The Overlooked Asset in Your IP Strategy

On Jun 16, 2025

By Danielle M. DeFilippis

When we discuss “intellectual property,” patents, copyrights and trademarks are what typically come to mind. Patents, copyrights and trademarks are valuable intellectual property assets. There is another, sometimes overlooked, category of intellectual property that merits discussion and protection. That category is trade secrets. Trade secrets are confidential, proprietary information belonging to a business that can give that business a competitive edge.

I regularly work with companies in the food, beverage and hospitality industry. In that industry, signature recipes, customer lists, and proprietary processes are examples of information that can be highly valuable. I am often asked how to protect those assets when federal registration such as trademark or patent registration, is unavailable.

It is important to identify what qualifies as a trade secret and then take appropriate steps to treat it as such. Trade secrets are business information with actual or potential economic value not generally known in the public. To qualify as a trade secret, it must be information the business treats as confidential. Ways to maintain the confidentiality of valuable information include limiting access to employees who need access to the information, providing clauses in relevant contracts that require confidentiality, and ensuring internal procedures prevent unauthorized use or disclosure. Businesses should train employees on how to properly protect and maintain the confidentiality of trade secrets and clearly explain the process in training materials such as operation manuals.

Agreements should clearly outline ownership of any intellectual property developed during employment or during the relationship with a contractor or vendor. These agreements should include confidentiality provisions to ensure the other party maintains the secrecy of the information shared. IP ownership and usage rights must be clearly defined, particularly in joint ventures or collaborations.

Supported by the appropriate documents, strategic planning can offer the necessary protection for your business assets when federal registration is unavailable.

For more information on protecting trade secrets, reach out to me at [email protected].

Disclaimer: Sponsored content articles do not reflect the opinions of New Jersey Business Magazine or the New Jersey Business & Industry Association.

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