For a piece of information to qualify as a trade secret, it must meet the following three essential criteria:
1. Secrecy
The information must be kept confidential. It should not be generally known or easily ascertainable by others in the same industry. Businesses must take reasonable steps, such as non-disclosure agreements or restricted access, to protect it.
2. Economic Value
The information must provide a competitive advantage or economic benefit to the owner because of its secrecy. For example, it might save costs, improve efficiency, or create a unique product or service.
3. Efforts to Protect
The owner must actively take reasonable measures to maintain the secrecy of the information. Without demonstrable protective actions, the claim of a trade secret can be invalidated.
Explanation:
A trade secret can include formulas, processes, designs, or customer lists that are valuable because they are not publicly known. Failing to meet any of these criteria may disqualify the information from being legally protected as a trade secret
