As someone delving into business, you have likely run into trade secrets before. As a business owner, you likely even have some of your own. But have you ever stopped to consider why trade secret protection is important?
The answer may hold more complexities than you expected. The truth is, trade secret protection is one of the most crucial things to the functioning of the market as we know it today.
What are trade secrets?
The World Intellectual Property Organization discusses everything you need to know about trade secret protection. This includes discussions focused around the purpose and importance of trade secrets and their protection.
First, what is a trade secret? This is any sort of component of your business that gives you an edge over the others. For example, it might be the recipe of an extremely popular fast food joint. It could be a specific tool used to produce your items. It may even be a person whose skillset is valuable to your product.
Why should you protect them?
Protection of trade secrets are important for you because it helps you keep an edge over your competition. But why is it important in general? Simply put, current theory believes that the law of unfair competition is crucial for the market to function in a fair way. It suppresses anti-competitive business practices and behaviors. In turn, this fosters innovation. It allows for a constantly evolving marketplace with better and better materials. This allows businesses like you to pinpoint and then satisfy market supply and demand. On top of that, it serves the consumer interest. In doing so, it also serves the whole of society.
So when you protect your trade secrets, you are not just doing it for yourself. You are doing it for the good of the entire market, which is really what makes it so crucial.