Trade secrets are arguably the oldest form of IP protection. Since ancient times, artisans and merchants have closely guarded their processes and techniques to maintain a competitive edge and protect their unique skills. Evidence of trade secret practices can be found in Hammurabi’s Code of Laws, throughout the Roman Empire and among medieval guilds.
Despite this rich history, trade secrets have often occupied a rather dark and dusty corner of the IP toolbox, overshadowed by their more modern relations: patents, trademarks, industrial designs and copyright. Research shows that conscious and strategic usage of trade secrets is not widespread. Around 40% of SMEs provide no trade secrets training to their employees.
This is unfortunate. Most companies and research institutions, regardless of their size, business sector or location, have trade secrets assets, which if used savvily can help maintain a competitive advantage over competitors. A study by the Organisation for Economic Co-operation and Development (OECD) finds a positive relationship between the strength of trade secret protection in an economy and its innovation performance.
But there are signs that the perception of trade secrets is changing. Factors such as the rise of digital innovation, greater use of open innovation models, increased movement of talent and changes in patent prosecution are causing trade secrets to be deployed more and more as part of a healthy IP strategy. An age-old tool is being rediscovered.
The aim of this WIPO Guide to Trade Secrets and Innovation is to provide a comprehensive overview of the role of trade secrets in supporting innovation and knowledge sharing at the global level, whilst helping enterprises and entrepreneurs to incorporate them into their IP strategy.
Designed to be accessible and digestible, the Guide combines an overview of the relevant policy and legal frameworks, with practical insights and examples of the evolving role of trade secrets in today’s economy. We illustrate how trade secrets can be used both as a defensive right, with chapters on management and litigation, and as a strategic asset for business growth and collaborative innovation.
Trade secrets have been hidden gems for too long. It is time to bring them into the light, so that they can truly sparkle. Whether you are a policymaker or business manager, a researcher or entrepreneur, we hope this Guide helps you to see the power of trade secrets and the value they bring to businesses strategies and global innovation.
Daren Tang
Director General
World Intellectual Property Organization