Which of the following statements is true about trade secrets?
A) A trade secret is a distinctive mark, word, design, picture, or arrangement used by the producer of a product that tends to cause consumers to identify the product with the producer.
B) Inventions and designs are not considered as trade secrets.
C) A trade secret is protected by the common law as long as it is kept secret and comprises elements not generally known in the trade.
D) If a trade secret is discovered by a competitor through reverse engineering, the competitor may not profit from the discovery without paying royalties to the party holding the trade secret.

Question

Quizplus · Accepted Answer

Trade secrets are protected by the common law as long as they are kept secret and comprise elements not generally known in the trade. A trade secret can be any confidential information, such as a formula, device, process, or other information, that gives a business a competitive advantage. Inventions and designs, on the other hand, can be protected by patents or copyrights. While a competitor cannot use a trade secret that they discovered through improper means, such as theft, they are not required to pay royalties if they independently discover the trade secret through lawful means, such as reverse engineering. Option A describes a trademark, while option D is inaccurate.

Which of the Following Statements Is True About Trade Secrets