Trade Secrets – University Business Linkage Cell

Trade Secrets

What is a Trade Secret?

A trade secret is any valuable, confidential business information that gives a company a competitive advantage. This can include formulas, processes, methods, designs, customer lists, or other proprietary knowledge that is not publicly known and is kept secret within the organization.

Why Are Trade Secrets Important?

Competitive Edge:

Trade secrets provide a business with unique advantages over competitors who do not have access to the same information.

Cost-Effective Protection:

Unlike patents, trade secrets do not require registration, making them a cost-effective way to protect valuable business information.

Long-Term Protection:

As long as the trade secret remains confidential, protection can last indefinitely.

Business Value:

Trade secrets are valuable assets that can enhance a company’s market position, reputation, and profitability.

How to Protect a Trade Secret?

01. Confidentiality Agreements

A Non-Disclosure Agreement (NDA) is used to legally bind parties from disclosing confidential information. It ensures that employees, contractors, and business partners understand and respect the confidentiality of the trade secret.

Why is an NDA important?
• It prevents unauthorized sharing of your trade secret.
• It provides legal recourse if the secret is disclosed without permission.

How to use an NDA?
• Have all employees, partners, and contractors sign an NDA before accessing your trade secrets.
• Clearly define what constitutes a trade secret and the penalties for unauthorized disclosure.

Click Here to Download University Internal NDA or University External NDA

2. Internal Security Measures

Implement measures to protect your trade secret, such as limiting access to the information, using secure communication channels, and employing encryption for digital data.

3. Awareness

Regularly educate about the importance of protecting trade secrets and the policies on confidentiality and security.

4. Physical Security

Take precautions such as restricting access to sensitive areas and keeping physical records containing trade secrets secure.

How to Transfer a Trade Secret?

When transferring or sharing a trade secret, it’s essential to take precautions to ensure the information remains protected:

01. Transfer Agreements

A Trade Secret Transfer Agreement is a legal document used to formalize the transfer of confidential business information between parties. It outlines the terms under which the trade secret is shared, the obligations of each party, and the protection mechanisms in place.

01. Confidentiality in Business Deals

When entering business transactions or collaborations, ensure that all parties are bound by confidentiality clauses that specifically address trade secrets. This includes NDAs and provisions within contracts that ensure trade secrets are not disclosed, used, or exploited without authorization.

If you need support in protecting, managing, or transferring your trade secrets, the Technology Transfer Office is here to guide you through the process.

Get in touch with us for assistance: enterprise@uom.lk or Contact Us