Trade secrets protect valuable commercial information that gives a business a competitive advantage - from manufacturing processes and algorithms to client lists, pricing models, and strategic data. Unlike registered intellectual property rights, protection for trade secrets depends on maintaining their secrecy and taking active measures to prevent unauthorised disclosure or misuse.
For many companies, trade secrets represent the cornerstone of innovation and operational success. In sectors such as technology, pharmaceuticals, finance, and manufacturing, the confidentiality of processes, formulations, or know-how can be as critical as a patent or copyright.
Legal and Commercial Framework
In the UK, trade secret protection is principally governed by the Trade Secrets (Enforcement, etc.) Regulations 2018, which implemented the EU Trade Secrets Directive (2016/943). These regulations define a trade secret as information that:
- Is secret (not generally known or easily accessible),
- Has commercial value because it is secret, and
- Has been subject to reasonable steps to keep it secret.
Remedies for misuse include injunctions, delivery up or destruction of confidential materials, damages, and orders to remove infringing goods from the market. Breaches can also lead to claims under common law for breach of confidence, particularly where former employees or business partners misuse confidential information.
Typical Issues and Considerations
Trade secret disputes often arise during employee departures, joint ventures, or M&A due diligence. Common issues include unauthorised use of proprietary data, copying of internal processes, or disclosure of sensitive information by contractors and collaborators.
Businesses must ensure they implement appropriate contractual and procedural safeguards - including confidentiality clauses, access restrictions, and clear internal policies - to support enforceability if a breach occurs.
How We Can Help
Culbert Ellis assists clients in identifying, protecting, and enforcing their trade secrets through:
- Drafting and reviewing confidentiality and non-disclosure agreements (NDAs).
- Advising on internal compliance and protection measures for sensitive information.
- Litigation and injunctions in cases of breach of confidence or misuse.
- Employment and exit strategy advice, including restrictive covenants and information recovery.
- Strategic risk management in cross-border and collaborative arrangements.
Our team combines litigation expertise with practical insight into corporate and technical operations, ensuring that trade secrets are protected as active, valuable business assets.
Free Initial Discussion
If you believe your trade secrets have been misused, or you wish to strengthen your company’s protections, contact us for a confidential discussion with one of our intellectual property specialists.
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