The Difference Between Trade Secrets And Trademarks

Some people get confused between trade secrets and trademarks. A trademark is something that is publicly recognized and known as being officially associated with a particular company. In contrast a trade secret can be a much more broad definition and by its very name is not made public.

According to the laws in most states, any device, pattern, formula, idea, or collection of information that gives the owner an advantage in the marketplace and is protected by the owner in a way that shows that it can be reasonably expected to keep their competitors or the public from finding out about it without stealing it is considered a trade secret.

There are many examples I can give of trade secrets. In an actual product, a trade secret could be the way certain ingredients are combined in the formulation of a nutritional supplement. Recipes, in particular those employed at commercial restaurants, are considered to be trade secrets.

One very famous one that I can think of right off is Colonel Sander's recipe for his Kentucky Fried Chicken. An idea for an invention that one has that they have not filed for a patent on yet would also be considered a trade secret, as are the complex algorithms that search engines like Google use to give us search results online.

Trade secrets are the opposite of other types of protecting of intellectual property such as trademarks and patents. The whole idea of a trade secret is to keep it from public knowledge and it is basically something that a person or company does themselves. Your trade secret will be given protection under law until you make the information public.

Companies and individuals protect information that they are unable to guard with other legal means such as patents and trademarks. There are numerous things that can be considered trade secrets. An idea that will give you a big jump over your competition in a particular market or even an idea for a piece of software or a website would also be a trade secret. Business information that you keep secret and only allow access to by employees such as marketing plans, costs, and pricing would be protected under law.

According to the law, the owner of a trade secret can legally prevent employees from using trade secret information or disclosing it by binding them with confidentiality or non-disclosure agreements. They also have legal protection from people who get the information by stealing it or through industrial espionage as well as people who get the information knowing that it is a protected trade secret.

The best way for a company to protect itself legally is to have employees sign a non-disclosure agreement, also known as an NDA. You should also have them signed by anyone that you do business with such as lenders and investors. An intellectual property attorney can help you with drafting this important document.

Gregg Hall is an author living in Navarre Beach, Florida. Find more about this as well as trademark lawyers at http://www.focusonip.com

PPC Ads Face A New Trademark Limitation

A federal court ruled last week that it is not only a trademark violation any longer to use another company?s trademark to deceive search engine users in the paid ad headline. The court has further ruled, that you can not purchase a trademark as a keyword to bring up your paid listing on Google, Yahoo, MSN and other search engines. This decision stemmed from a national jewelry company, who bid on the term, ?dating ring? to bring up their ad for the sale of the companies own diamond rings. The problem was that another company already had the trademark to the term ?The Dating Ring?. When this term was entered by users of the search engines, the national company?s ad came up for the sale of rings.

The defendant argued it never placed the trademarked term on any of its products or used the term ?dating ring? on its Web site. Unfortunitly for the company, they did use the term in the content of their ad.

This ruling makes the practice of going after your competitors name very costly now. The issues as I see it may become the inability to use common terms that the causal user may search by, where they do not even know it is a trademark. In this case illustrated, the term, ?dating ring? seems rather innocent to me. I had no idea there was even a company with that name. The law provides protection for companies name as it is used in commerce. However, when a company chooses such a general term for a name and does not have a large presence in the economy or even in the specific industry it conducts business, and then it seems unfair to require every company bidding on key words to conduct a trademark search for each and every term they will purchase. This type of investigation can prove to be most costly, where it is a standard practice in the P.P.C (pay per click) world to buy upwards of two to three thousand terms know as long tail terms, to bring in as many visitors as possible. The goal is of course to make a sale, collect information or what ever the desired conversion for the site may be. However, just because someone uses their web site in commerce and has purchased a term, that has a very plain or simple meaning, is not evidence that such a person or company intended to violate a small unknown companies trademark.

This article was written by Michael Goldstein for the Law Office of Goldstein and Clegg, a writters of the E-legal Lawyer Blog.