In today’s competitive marketplace, intangible assets (IA) and intellectual property (IP) aren’t just legal safeguards – they can be your key to gaining a market advantage. Especially for small and medium-sized enterprises (SMEs) with limited resources, managing them effectively, from patents to trade secrets, is more than smart business practice; it’s a strategic way to fuel growth.

What are trade secrets and why are they important?

Trade secrets are non-registrable IP and refer to secret information that has commercial value. They are often present in R&D processes, manufacturing processes, client lists, or even software algorithms. Unlike patents, which require public disclosure in exchange for protection, trade secrets do not require disclosure – meaning you can keep valuable information out of your competitors’ hands indefinitely. One famous example of a trade secret is the Coca-Cola formula, which has remained protected for more than a century – a testament to the long-term value of trade secrets.

Can I have both patents and trade secrets?

Patents and trade secrets should not be viewed as mutually exclusive, but as complementary ways to protect your innovation. For example, you might patent core components of your technology, but protect the manufacturing process as ‘know-how’ – a type of trade secret. This dual strategy maximises IP protection and leverages the strengths of both forms. One famous example is Apple, who effectively uses this approach by patenting distinctive designs or unique technology features, while maintaining proprietary manufacturing processes as trade secrets.

Read more: Patents and Trade Secrets: A Dual Strategy for Business Growth

How do I know if I have trade secrets, and how can I protect them?

According to the Study on The Protection and Management of Trade Secrets in Singapore published by the Intellectual Property Office of Singapore (IPOS) in September 2021, an overwhelming majority of surveyed enterprises (98%) recognised the importance of trade secrets to their business growth. Despite this, over 80% expressed a need for better measures to protect and manage these assets.

Trade secrets can be challenging to identify, especially when they are part of patentable technologies. Here are some best practices to help SMEs like yours spot and protect your trade secrets:

1. Audit your information: Review all information within your company to determine what gives you a competitive edge – this can either be part of a general IP audit exercise, or specifically conducted for trade secrets.
2. Evaluate its confidentiality: Consider whether this information is known outside the company or easily ascertainable. If not, it has potential as a trade secret.
3. Decide on how best to protect it: Evaluate whether to protect the information as a trade secret or to seek patent protection. (Check out our IP Snack Pack video series for more tips on patents vs. trade secrets! Watch part 1, and part 2 here.)
4. Assess its value: If you decide to protect the information as a trade secret, determine the economic benefit of keeping it confidential. A cost-benefit analysis can be helpful.
5. Implement safeguards: Develop protocols to maintain secrecy, such as confidentiality agreements, secure data systems, and workflows and documentation processes specific to trade secrets.

What else can I do to protect and leverage my trade secrets?

Effective protection begins with empowering your team – particularly management and relevant staff – by equipping them with the necessary training and skills to safeguard and leverage these assets. Many of your team members may also contribute to the creation and management of these trade secrets. Ensuring they are fully aware and prepared is key to securing your IP and sustaining your business’ unique position in the market.

The strategic use of trade secrets and patents also goes beyond protecting what you’ve created – it’s about setting a foundation for future growth. By understanding and implementing best practices, you can not only safeguard your innovations, but enhance your business’ market position.

Whether in-house or external, IP experts bring a wealth of experience and a nuanced understanding of both global and local IP landscapes. By working with them, you gain access to tailored, strategic insights that can significantly enhance your ability to leverage your innovations. They can help you navigate complex legal environments, identify risks and opportunities you may not have considered, and maximise the commercial potential of your IA and IP.

Take the first step today by reviewing your current IP strategy and considering how integrating a smarter approach to trade secrets, patents, and more could propel your business forward.

Book a complimentary chat with us to learn how you can leverage on your IP. test

Book IA Chat Session