{"id":1386,"date":"2022-01-09T23:31:36","date_gmt":"2022-01-09T23:31:36","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=1386"},"modified":"2026-05-28T05:21:42","modified_gmt":"2026-05-28T04:21:42","slug":"trade-secret","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/intellectual-property\/trade-secret\/","title":{"rendered":"What is a Trade Secret in the UK?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>The Trade Secrets Regulations 2018<\/em> gave UK businesses their first statutory definition of a trade secret: information that is secret, has commercial value and is protected by reasonable steps to maintain confidentiality. Before 2018, businesses relied on common law breach of confidence, which continues to run alongside the Regulations. To qualify for protection, a business must actively maintain confidentiality. Information that enters the public domain loses its protection permanently. The <em>National Security Act 2023<\/em> also introduced criminal liability for trade secret misappropriation in certain national security contexts. Practical protection measures include confidentiality clauses in employment contracts, non-disclosure agreements with contractors and partners, and IT safeguards that limit access to sensitive information. This article will explain a trade secret and how to protect your business\u2019 trade secrets and other commercially sensitive information.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Trade Secret?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In UK law, a piece of legislation called The Trade Secrets (Enforcement, etc.) Regulations 2018 regulates trade secrets.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A trade secret is information held by a business which:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>is secret;<\/li>\n\n\n\n<li>is likely to have commercial value (i.e. your competitors would be willing to pay for that information); and<\/li>\n\n\n\n<li>has been kept secret because reasonable steps have been taken to ensure the information remains secret.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Most businesses are likely to have <a href=\"https:\/\/legalvision.co.uk\/intellectual-property\/protect-your-trade-secrets\/\">trade secrets<\/a>. For example, information about how you run your business, who your customers are, and specific secret formulae or procedures used to create your products or services are all your business\u2019 trade secrets.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Examples<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In the UK, the definition of a trade secret is very broad. Most businesses will have trade secrets, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Technical Information: <\/strong>Manufacturing processes, chemical formulas, algorithms, software source code;<\/li>\n\n\n\n<li><strong>Business Information:<\/strong> Customer lists, pricing strategies, marketing plans, financial projections;<\/li>\n\n\n\n<li><strong>Strategic Information: <\/strong>Expansion plans, research and development projects, acquisition targets; and<\/li>\n\n\n\n<li><strong>Operational Information:<\/strong> Quality control methods, supply chain details, cost structures.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Some well-known examples of trade secrets include the exact recipe for Lea &amp; Perrins Worcestershire Sauce, the recipe for the Scottish drink Irn Bru, and the formula for WD-40.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Does it Mean to \u201cTake Reasonable Steps\u201d?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are court cases that give us guidance on this term. In these cases, non-disclosure agreements with employees were considered evidence of a \u2018reasonable step\u2019 in ensuring confidentiality.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is because it ensured that one could only access confidential information:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>through the company\u2019s IT system;<\/li>\n\n\n\n<li>on company premises; or<\/li>\n\n\n\n<li>by people authorised to access that IT system.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, you should implement non-disclosure agreements to protect trade secrets.<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold 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In this case, it could still constitute confidential business information. UK law protects confidential information as well.&nbsp;<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Confidential information should not be shared. For example, business information is marked \u2018confidential\u2019, and business strategies are shared with small groups within the business that you give or tell someone in confidence. Generally, the information you provide to an employee not known to someone outside your business is likely confidential.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Protecting Trade Secrets and Confidential Information<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The easiest way to keep your trade secrets and <a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/commercially-confidential-information\/\">confidential information<\/a> secret is to include confidentiality clauses in your employment contracts. For example, you should include a clause that prevents employees from sharing certain information with those outside the business.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/09\/27074704\/guide-to-resolve-uk-image-1.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Guide to Resolving UK Business Disputes<\/div>\n            <div class=\"body-text\">\n                <p>This guide outlines how to resolve commercial disputes.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.com.au\/guide-resolving-uk-business-disputes.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<p class=\"wp-block-paragraph\">Suppose you work with contractors or other agencies that need to know confidential information about your company or business processes. In that case, you can require that any such contractors sign a <a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/non-disclosure-agreements\/\">non-disclosure agreement (NDA)<\/a>. You can also require employees to sign an NDA as well. These documents mean that you will have the right to take legal action if your employee or contractor shares your confidential information with anyone else. You can also bring an action if an employee uses the data to set up a business that directly competes with yours.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">IT System and Safeguards<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You should also determine what confidential information and trade secrets you have in your business. Then, create a record of who has access to this information. You should also ensure that your company\u2019s IT systems have appropriate security. Then, if any third party unlawfully tries to access your IT systems, the information they can access is limited.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another step you could take is to ensure that confidential information is compartmentalised where possible and disclosed only on a need-to-know basis. In addition, you should ensure appropriate digital and physical safeguards are in place, such as keeping sensitive documents in a safe or implementing multi-factor authentication to access systems containing confidential information.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Protecting Trade Secrets When Employees Leave<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Employment contracts should include post-termination confidentiality obligations, but these alone may not be enough. When an employee leaves, they carry knowledge of your business with them. Unless your contracts include appropriate restrictive covenants, a former employee may immediately use that knowledge to compete.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Non-compete clauses restrict a former employee from working for a direct competitor or setting up a competing business for a defined period after leaving. Non-solicitation clauses prevent a former employee from approaching your clients or recruiting your staff.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>For these clauses to be enforceable in the UK, they must be reasonable in scope, duration and geography. Courts will not enforce clauses that are disproportionately wide. A clause prohibiting any work in the same industry for five years is unlikely to hold. One restricting directly competing activity for six months in a defined territory is more likely to be upheld.<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Post-termination restrictions should be reviewed when an employee&#8217;s role or seniority changes, as the original clauses may no longer reflect the level of access they have had to sensitive information.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What if Somebody Shares My Information?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you bring a legal action for trade secret theft or unauthorised use of confidential business information, there are various remedies that the Court may provide if you are successful. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>ordering the infringer to stop using or disclosing the trade secret\/confidential information;<\/li>\n\n\n\n<li>destruction or delivery of any products using the trade secret\/confidential information;<\/li>\n\n\n\n<li>an order prohibiting any future sale of such goods; and<\/li>\n\n\n\n<li>damages or compensation.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If awarded, compensation will generally constitute the amount a licence for the trade secret would have cost. Damages are calculated based on the foreseeable economic consequences to your business resulting from the infringer\u2019s actions.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>Key Statistics<\/strong><\/p>\n<ol>\n<li><strong>In the 12 months to late 2024<\/strong>, 43% of UK businesses experienced a cybersecurity breach or attack. The figure was 70% for medium businesses and 74% for large businesses, making cyber intrusion one of the most significant threats to trade secret security.<\/li>\n<li>Cyber attacks attempting to steal intellectual property and knowledge assets cost the UK economy between<strong> \u00a31 billion and \u00a38.5 billion<\/strong> in 2024, according to commissioned government research. This makes IP theft from cyber attacks a material economic risk for UK businesses.<\/li>\n<li>Among businesses that identified a cybersecurity breach in the 12 months to early 2024, the average cost of the single most disruptive incident was<strong> \u00a31,205<\/strong> per business overall and approximately \u00a310,830 for medium and large businesses.<\/li>\n<\/ol>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>Sources<\/strong><\/p>\n<ul>\n<li>Department for Science, Innovation and Technology \/ Home Office, <em>Cyber Security Breaches Survey 2025<\/em>, 2025.<\/li>\n<li>Alma Economics, <em>Economic Impact of Intellectual Property and Knowledge Assets Theft from Cyber Attacks in the UK<\/em>, commissioned by UK government, 2025.<\/li>\n<li>Department for Science, Innovation and Technology, <em>Cyber Security Breaches Survey 2024<\/em>, April 2024.<\/li>\n<\/ul>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your business\u2019 trade secrets give you a competitive advantage. To protect your trade secrets and confidential business information, you must keep such information confidential and share it only with individuals who need to know. You should ensure that all your employees know the need for confidentiality. Additionally, you can use legal documents such as employment agreements and non-disclosure agreements. This will oblige your employees and contractors to keep such information confidential.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you need help protecting your business\u2019 trade secrets and confidential information, our experienced <a href=\"https:\/\/legalvision.co.uk\/intellectual-property-lawyers-lp\/\">intellectual property lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\/\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">How do I protect trade secrets when an employee leaves the company? <\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Post-employment confidentiality obligations are not automatic. Include express confidentiality clauses in employment contracts that extend beyond the end of employment. Non-compete and non-solicitation clauses can also limit a former employee&#8217;s ability to use your trade secrets to compete with your business or poach your clients.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Can a trade secret lose its legal protection? <\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. If a trade secret enters the public domain, it loses legal protection. This can happen if you fail to take reasonable steps to keep the information confidential, or if someone discloses it without authorisation. Once the information is publicly known, protection cannot be recovered.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What court remedies are available if someone unlawfully discloses my trade secret? <\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A court can order an infringer to stop using or disclosing the trade secret, hand over or destroy any products made using it, and prohibit their future sale. Damages or compensation may also be awarded, typically calculated as the cost of a licence for the trade secret.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How does trade secret protection differ from a patent? <\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A patent requires registration and public disclosure of the invention in exchange for exclusive rights for a limited term. A trade secret requires no registration and can last indefinitely, but only for as long as the information remains confidential. Unlike a patent, trade secret protection is lost if the information becomes public.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Trade Secrets Regulations 2018 gave UK businesses their first statutory definition of a trade secret: information that is secret, has commercial value and is protected by reasonable steps to maintain confidentiality. Before 2018, businesses relied on common law breach of confidence, which continues to run alongside the Regulations. To qualify for protection, a business<a href=\"https:\/\/legalvision.co.uk\/intellectual-property\/trade-secret\/\">Continue reading <span class=\"sr-only\">&#8220;What is a Trade Secret in the UK?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13512,"featured_media":641,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"2178,2388,2299,1704,1912,2350","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[38],"tags":[20,21,186,276,277],"class_list":["post-1386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-intellectual-property","tag-small-business","tag-medium-business","tag-intellectual-property","tag-trade-secret","tag-confidential-information"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is a Trade Secret in the UK? 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