Trade Secrets in Washington

Washington state law defines trade secrets as information that is both not generally known to the public and provides a competitive advantage to a business. This information can include such things as formulas, patterns, designs, compilations of data, customer lists, or any other information that is kept confidential and is important to a business.

Trade secrets can be critical to the success of a business. They can give a company a significant advantage over its competitors and can be the key to maintaining a business’s position in the market. However, it is important to take steps to protect trade secrets to prevent them from falling into the wrong hands.

General Law on Trade Secrets

The law considers trade secrets as a form of intellectual property (IP). For the law to consider IP as a trade secret, the property must generally contain three key features. These are:

1. The property must provide a business with a competitive advantage in the marketplace,
2. The property must derive an economic value from not being generally known to the public, and
3. The property’s owner typically has to take reasonable efforts to maintain the property’s secrecy.

Perhaps the most popular example of a trade secret is the formula or recipe for Coca-Cola.

How to Protect a Trade Secret

Trade secret owners do not register them with the federal government to protect them. Rather, they must take several steps to secure protection. These steps include:

1. Identify the trade secret: The first step in protecting trade secrets is to identify what information qualifies as a trade secret. This can be done by analyzing a company’s processes and data to determine which information is critical to the business’s success.
2. Keep information confidential: Once trade secrets are identified, businesses should take steps to keep the information confidential. This can include limiting access to the information, marking documents as confidential, and implementing physical and digital security measures.
3. Use confidentiality agreements: Businesses can use confidentiality agreements or non-disclosure agreements (NDAs) to protect trade secrets when sharing information with employees, contractors, or other parties. These agreements can prevent the unauthorized use or disclosure of confidential information.
4. Train employees: Employees should be trained on the importance of protecting trade secrets and the steps they can take to do so. This can include educating them on how to handle confidential information and the consequences of unauthorized disclosure.
5. Monitor and enforce: Finally, businesses should monitor their systems and employees to detect any unauthorized disclosure or use of trade secrets. If a breach is detected, businesses should take swift action to enforce their rights under the law and seek legal remedies.

Note that trade secrets can be critical to the success of a business, and it is important to take steps to protect them. In Washington state, businesses can use confidentiality agreements, employee training, and monitoring to safeguard their confidential information. By taking these steps, businesses can maintain their competitive edge and protect their intellectual property.

Contact The McWilliams Law Group for Help

When you are ready to open a new business, close a business, or take your current business to the next level, the lawyers at The McWilliams Law Group are here to help. We can help ensure that your operations provide you with the tax and liability protections that best fit your short- and long-term plans. Our attorneys work closely with business owners throughout Washington and California, providing individualized and strategic advice to help their businesses run smoothly. Contact us now and get the skilled business advice that you deserve.