Trade secrets are valuable pieces of information that companies keep hidden from everyone else. Trade secrets are valuable intangible assets that can include formulas, recipes, manufacturing, customer lists, marketing strategies and other proprietary knowledge that is not generally understood or easily accessible. Just like you wouldn’t want to share your special cookie recipe with your competitors, companies guard their trade secrets tightly. They are like a secret weapon that helps improve a firm’s competitive advantage. To protect trade secrets, companies often use legal agreements and might make employees or suppliers sign contracts promising not to reveal the secrets. They could also use secure technology to keep the information safe. Keeping trade secrets confidential is crucial to maintaining their uniqueness in the marketplace.
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