Trade secret
By Gareth HoyleLast updated How we research
A trade secret is business information that has value because it is not generally known and that its owner takes reasonable steps to keep secret.
A trade secret is information that derives independent economic value from not being generally known or readily ascertainable, and that its owner has taken reasonable measures to keep secret. That is the federal definition in 18 USC 1839(3), part of the law the Defend Trade Secrets Act of 2016 amended. Formulas, processes, source code, pricing models and customer lists can all qualify.
Can licensing data for AI training destroy a trade secret?
Licensing data for AI training can weaken or destroy trade secret protection if the information is disclosed without confidentiality controls, or if a model trained on it can reproduce it for anyone. Protection depends on the reasonable measures test, so the license should impose confidentiality, limit access and bar output of the secret material.
How do sellers protect trade secrets in a data deal?
Sellers share only redacted samples under a mutual NDA, remove the most sensitive material before delivery and choose buyers whose intended use will not expose it. Our commitment is that buyers see redacted samples under a mutual NDA and full data moves only after you sign a license directly with the buyer.
In the UK, trade secrets are protected by the Trade Secrets (Enforcement, etc.) Regulations 2018 and the common law of confidence.