Trade secrets and other IP protection
An overview of trade secrets, confidentiality agreements and other less common methods of protecting intellectual property
When it comes to protecting intellectual property (IP), familiar rights come to mind: patents, copyright, trade marks and designs.
While these are certainly important, it's important to know that you can protect your IP in a number of other ways. These include trade secrets, confidentiality agreements, company names, and various specialised rights relating to databases, publications and plans. You can also protect some types of IP with conditional access technology and electronic copy protection devices.
This guide will examine the different approaches to IP protection. It will highlight some of their advantages and disadvantages and suggested uses. Finally, it will point out measures that can help you to protect your business' original products, services and ideas.
Trade secrets
What are trade secrets and how can you use trade secrets to protect your intellectual property
Trade secrets are valuable business assets. Businesses can use them alongside other intellectual property rights - including patents, designs, trade marks and copyright - or as an alternative to them, to provide a competitive advantage in the marketplace.
As long as you don't disclose them, trade secrets have an infinite lifetime.
Definition of a trade secret
A trade secret is information that:
- is not be generally known or readily accessible
- has value because it is secret
- is subject of reasonable steps to keep it secret
Different types of trade secrets
Trade secrets come in various forms and consist of a wide range of confidential information, such as:
- commercial data
- technological information
- product information
They can exist in many different types of business activities, including:
- sales and distribution
- understanding of customers and their needs
- marketing or advertising
- working with suppliers and clients
- manufacturing processes
Examples of trade secrets include the Coca-Cola recipe, search engine algorithms, customer lists or sales methods.
Using trade secrets
You may use trade secrets to protect an invention that does not meet the patentability criteria, or to protect the information you don't want to disclose. For example, the ingredients and/or formulation of foodstuff, pharmaceutical product or perfume, which would be difficult for someone else to find out simply from examining the product itself. In these cases, a trade secret might provide the right kind of protection.
However, bear in mind that trade secrets do not guarantee exclusivity or prevent someone else from inventing the same (or similar) product or process, independently of you.
Trade secrets infringement
The best way to protect an idea may be to keep it secret. However, you may find it difficult to keep a trade secret confidential within your business. If it is necessary to disclose information (or parts of it) to partners or other people in your business, make sure that everyone involved signs a non-disclosure agreement (NDA).
If, after signing the NDA, they share the information with other people without your permission, you can sue them for breach of confidence.
To establish that a breach of confidence has taken place, the following all have to be present:
- the information must have a quality of confidence to it
- there must have been an obligation of confidence, whether express or implied
- there must have been unauthorised use of the information
Other unfair practices in respect of trade secrets include industrial or commercial espionage and breach of contract.
Protecting trade secrets
Measures and remedies to protect trade secrets vary across the world. In the UK, trade secrets are governed by the and protected by contract and/or the common law of confidence.
International standards for protecting trade secrets exist as part of the World Trade Organisation's .
Confidentiality agreements
How to use confidentiality agreements to protect your business when sharing secret information with others
If you invent something that you plan to patent, you should not disclose your invention to the public before filing a patent application. Any disclosures that you make - no matter how small - become part of the 'prior art' and could invalidate your application.
Disclosing confidential information
You can freely discuss your invention with your qualified lawyer, solicitor and patent agent. This is because what you say to them is legally privileged and in confidence. They are professionally obliged not to tell anyone else, so the information will not become public knowledge.
However, if you need to discuss your invention with other people before you apply for the patent, a confidentiality agreement or a non-disclosure agreement (NDA) may be helpful.
For example, an NDA may be beneficial when you speak to potential partners like investors, manufacturers or stockists, or even someone providing you with a service or advice such as accountants, financial advisers, insurance brokers or marketing agencies. Don鈥檛 assume such conversations are automatically confidential.
Non-disclosure agreements
An NDA is a legal contract between two parties. Depending on what is agreed, an NDA could protect only information which is recorded in some form and marked 'confidential' or it can also protect the information you share in meetings or presentations. Either way, an NDA should restrict the use of the ideas and information to a specific permitted purpose.
NDAs can be:
- one way - if only you are disclosing information
- mutual - if both parties are disclosing information
NDAs will not suit every situation, and you should think carefully about what is included. Ideally, consult a qualified lawyer or patent agent for advice if you are thinking about talking to anyone else about your invention.
Read more on non-disclosure agreements.
Company name as intellectual property
How your company name can work as a unique identifier to form important intellectual property
It is a common misconception that registering a company name at Companies House gives you unrestricted rights to this name when it comes to trade marks and web domains. This is simply not the case. They are three different forms of protection, administered by different organisations that operate independently of one another.
IP in company names
A company name identifies a legal entity. It has to conform to certain regulations and rules for naming a business.
Registration of a company name at Companies House prevents others from registering an identical name or one sufficiently similar to cause confusion. It does not, however, prevent others from selling goods or services under an identical or a similar name. It also does not automatically provide trade mark protection and exclusivity, or the right to an associated domain name.
IP in trade marks
A trade mark is different from a company name. In the UK, you can register a trade mark with the Intellectual Property Office. There are rules and regulations about what you can register.
A trade mark can be more than just a business name. It can be a product or service name, a logo, colour, shape or any combination of these. Registering a trade mark creates a legal right which:
- grants the owner exclusive rights to the use of the mark in relation to the goods and services that it has been registered for
- prevents another business from using a name that is the same or similar to that of the registered mark (unless they have been given express permission)
If a business is incorporated under a name which is identical or similar to a previously registered trade mark, and that company provides similar goods or services, the owner of the registered trade mark may be entitled to bring an action for trade mark infringement.
IP in domain names
A domain name is the unique address that identifies the location of a website on the internet. Domain names are issued on a first-come, first-served basis by various Internet registration authorities around the world.
Incorporating a new company under a specific name does not provide you automatic rights to a matching domain name. It's good practice to check the name availability for any domains, as well as trade marks, before registering at Companies House.
If you use a domain name that is identical or similar to another person's registered trade mark, then you potentially risk infringing the trade mark, especially if the domain name relates to the same or similar goods or services. See more on domain name and trade mark conflicts.
Protecting your company name
Businesses often use all three elements - the trade mark, the domain name and the company name - to promote their products and services. Before you form a new company or begin trading, make sure that you:
- check availability of the chosen name at Company House
- check availability of associated trade marks
- check availability of associated domain names
Once you're satisfied that the name you have chosen is available and does not infringe any previous rights, you should take steps to protect it. As with any legal processes, it's always worth getting professional or legal advice from the experts.
Database right
Databases can be valuable commercial assets - you can protect their structure through copyright or their content through the sui generis database right
Databases are protected under law through copyright and 'sui generis' or database right. Both are automatic, unregistered rights that allow the owner to control certain uses of their database.
Copyright protection for databases
Copyright protects the selection or arrangement of material in a database where this is original, ie creative. Depending on the nature of the content within the database, the content itself:
- may be subject to individual copyright protection (eg an article)
- may not constitute intellectual property (eg raw data or values)
If you are creating or using a database that includes individual copyright material, you may need to seek the permission of the copyright owners to use their work.
Copyright protection for databases in the UK and EEA has not changed after 1 January 2021. The UK and all EEA member states are members of international treaties on copyright that ensure eligible works (eg databases that are original) are protected in all treaty countries.
Database rights
Database rights protect the contents of a database. A database does not have to be original for it to qualify for database rights, but there needs to have been a substantial investment in obtaining, verifying or presenting the data.
In business, database rights may apply, for example, to:
- customer lists
- sales records
- business contacts
- extracts from research reports, etc
Database rights from 1 January 2021
Database rights were introduced by the EU Database Directive. Only databases made by EEA nationals, residents or businesses are eligible for protection under the database right.
UK citizens, residents, and businesses are not eligible to receive or hold database rights in the EEA for databases created on or after 1 January 2021.
Database rights that exist in the UK or EEA before 1 January 2021 (whether held by UK or EEA persons or businesses) will continue to exist in the UK and EEA for the rest of their duration. These rights are guaranteed under the Withdrawal Agreement. If you wish to use databases protected by these rights, you will continue to need the permission of the right holders.
UK owners of databases created on or after 1 January 2021 will need to consider whether they can rely on alternative means of protection in the EEA - for example licensing agreements or copyright, where applicable.
For more information, see sui generis database rights from 1 January 2021.
Protecting plant varieties with Plant Breeders' Rights
How new varieties of plant and seeds are protected by Plant Breeders' Right
Plant Breeders' Rights (PBR) are a form of intellectual property (IP) designed specifically to protect new varieties of plants.
To get these rights, your plant variety must be:
- distinct - have different characteristics to other plants of the same species
- uniform - all plants in the variety must share the same characteristics
- stable - it remains unchanged after 'repeated propagation', eg reproduction from seeds, cuttings, bulbs or other plant parts
You can register your right in the UK or in the EU.
Plant variety rights in the UK
Plant varieties with registered rights in the EU before 1 January 2021 have been given a corresponding UK right. These plant varieties will have .
Change of details
If you want to change any details of your plant variety, contact pvs.helpdesk@apha.gov.uk with your request and EU grant number. The UK will continue to use the EU grant number for any correspondence.
Plant variety rights in the EU
There is no change in protection in the 27 EU Member States.
Varieties with EU rights granted before 31 December 2020 have been given a corresponding UK right from 1 January 2021. From this date, EU PBRs no longer apply in the UK.
If you've already applied for EU rights, but these were not granted before 1 January 2021, you must apply to the Animal and Plant Health Agency (APHA) for protection in the UK using the online application process.
For new varieties, you鈥檒l need to apply separately in the UK and the EU. You must apply to the:
- for UK protection
- for EU protection
UK businesses can still hold and apply for EU plant variety rights from 1 January 2021, although you'll need an address or procedural representative in the EU.
Who can apply for PBR?
You can only apply for PBR if you've bred, discovered or developed a plant variety, or if you've been chosen by the breeder as their successor.
You can appoint an agent to manage the application process if they are authorised. They'll need to . If the applicant or agent applying isn't based in the UK, you will need to appoint an authorised UK agent.
All applications for UK Plant Breeders Rights must use the online application process. There are .
Application closing times
You can apply for PBR anytime. If you want to be included in a specific year鈥檚 test and trials, the application closing dates for agricultural and vegetable crops are the same as the closing dates for . Find .
How rights can protect your plant varieties
Your rights mean that nobody can use your plant species, without your permission, for:
- production or reproduction
- selling or offering for sale
- altering so it can be propagated
- exporting or importing
- keep stock of your plant species for any reason
Your rights last for 25 years (or 30 years for trees, vines or potato varieties).
To apply for the rights, you must name your variety. The same name will usually be used in the UK and all EU member states if the variety is accepted. You can give up your rights at any time and rights may be terminated if the variety no longer fulfils its criteria.
You must add new plant varieties to the UK's national lists if you want to market them. Check if your .
Conditional access technology
How conditional access technology enables you to allow access to encoded broadcasts
Conditional access technologies prevent unauthorised use of services by a consumer. Typically, they are used in digital transmissions, for example in digital broadcasting, to protect revenue and intellectual property (IP).
Conditional access relies on scrambling and encryption of transmissions so that only users who pay for them or subscribe to them can access them.
The technology usually entails a subscriber management and authorisation system and some type of smart cards and other decoders that decrypt the data once it is authorised for access. Broadcasters sell or rent these machines to the viewers which enables them to view or listen to encrypted programmes.
It is illegal to make unauthorised copies of smart cards or other decoding equipment, as this deprives the broadcaster of revenue from people who pay for legitimate decoders.
If someone sells or uses an illegal decoder, they may be committing a criminal offence.
Copy protection devices
Information on technologies that are available to protect your intellectual property and prevent counterfeiting
Copy protection devices come in several forms. They are usually digital codes embedded in electronic products which prevent, or frustrate, unauthorised copying.
Some copy protection systems require an access code before you can copy the product. Others cause unauthorised copies to be unreadable.
If you sell your digital products with copy protection and similar technical measures, you have the right to take action against anyone who makes or sells systems to get around the protection.
These rights are similar to those preventing copyright infringement. If someone deals in ways of overcoming copy protection, they may also be committing a criminal offence.
Other forms of copy protection can include holograms, brand marks and other unique elements on packaging, which identify original products and help to differentiate them from counterfeits. See more on copy protection devices for digital content.