IP Monday Law Blog 

Every December, my kids start whispering to each other and scribbling notes they think I can’t see. They’ve got a big secret: their wish list for Santa. They treat it like classified intel. Folded notes under pillows and sudden silence when I walk into the room. And honestly? They’re doing it right.

In the world of business, some “secrets” deserve the same careful treatment, we just call them trade secrets instead of holiday wishes.

What Makes a Trade Secret Special?

A trade secret is any information that has economic value and gives your business an edge because it is not generally known or readily attainable by others. It could be your secret recipe, a top client list, manufacturing process, or pricing strategy. Like Santa’s list, it only works if it stays private.

But here’s the catch: legal protection depends on your efforts to keep it a secret. If sensitive files are accessible to everyone in the company, or you share details casually with partners without safeguards, the magic fades fast.

Ways to Keep the Magic Alive

Here’s how to keep your trade secrets just as secure as my kids’ Christmas lists:

1. Confidentiality Policies and Agreements – While not legally required, having employees sign agreements and follow clear policies strengthens your protection.
2. Non-Disclosure Agreements (NDAs) – Before sharing your secret formula with outsiders, i.e. investors, vendors, collaborators, get an NDA in place. It’s your “no peeking until Christmas” clause.
3. Confidentiality Clauses in Contracts – Include obligations into contracts with partners, freelancers, and consultants.
4. Limit Access and Implement Controls – Flag sensitive documents as Confidential and restrict sensitive information to those who need to know. Think “Santa’s Nice List Only.”
5. Regular Training and Reminders – Even elves need refreshers. Courts look for reasonable measures. Regular training reminds employees to keep trade secrets secure.

Moral of the Story

Trade secrets lose their value when they become generally known or easily discoverable. Whether it’s your kids guarding their wish lists or your company protecting a key process, secrecy isn’t about being sneaky, it’s about being smart.

This season, while the kids are hiding notes for Santa, take a cue from them: Protect what’s valuable, document your efforts and share only with those who truly need to know. If you have further questions about safeguarding trade secrets, contact your IP attorney.