Wednesday, April 12 2023   \  Published by Ella Cheong .

Keeping trade secrets secret is no secret!

Keeping trade secrets secret is no secret!

Trade secrets can be the most important form of intellectual property rights to their owners. This is why The Coca-Cola Company staunchly guards access to the secret recipe for making its iconic Coca-Cola brand of soft drinks; by doing so, it can preserve an exclusive monopoly over the distinctive flavour of its drinks, which nobody else can exactly replicate in trade.

Broadly speaking, a trade secret is confidential information which is commercially valuable to a business, and which provides it with a competitive edge. More specifically, under The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), a multilateral agreement among member nations of the World Trade Organisation (WTO) including Singapore, a trade secret is information that is generally not known to the public, confers some sort of economic benefit on its holder and is the subject of reasonable efforts by the rightful holder of the information to maintain its secrecy.

Trade secrets can encompass manufacturing and industrial secrets, as well as other commercial secrets which may include technical know-how, new products or business models, business operation manuals and other kinds of information closely guarded by companies.

There is no legislation governing the protection of trade secrets in Singapore, and protection is instead based on the common law doctrine of breach of confidence as well as intellectual property and/or contract law. In this regard, consideration first has to be given to determining whether the subject matter concerned qualifies as a trade secret. Some determining factors would include: (1) whether there exists a quality of confidentiality; (2) whether the information was given under circumstances that would import an obligation of confidentiality on the receiving party; and (3) whether the party communicating the trade secret is authorised to do so or knows that the information is of a confidential nature. Read more

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