A trade secret is one of the most valuable components of a company’s functioning, which can provide it with a significant competitive advantage. Hence, it consists in confidential information that describes the processes or things that characterize the organization. It can be a phrase, a slogan, a symbol, or a mixture of these aspects. To qualify for a trademark, the information must correspond to specific points. It must have commercial value for the company, must be known to a limited number of people, and fall under such documents as consent to conceal data for the persons by whom it is used.
Unlike a trademark, a trade secret is characterized by large scales. The first concept includes the protection of the name, logo, packaging of a product or service under a trademark. A trade secret as an intellectual property includes such concepts as patent, copyright, and trademarks (Andreicovici, 2021). The unauthorized acquisition, use, or disclosure of such secret information in a manner contrary to honest commercial practices by others is regarded as an unfair practice and a violation of the trade secret protection.
The protection of the trade secret takes place in compliance with two mandatory forms. It can be said that the most important of them becomes through the creation of agreements, contracts, and procedures for establishing documentary protection of intellectual property (Halbert & Ingulli, 2003). Another form of ensuring the security of the phenomenon under study is the establishment of specialized technologies to ensure physical and electronic security and confidentiality. Violation of these aspects may entail judicial punishment and be considered improper behavior by judges.
Therefore, unauthorized access to confidential information for the purpose of further dissemination may entail legal consequences in the form of compensation for the company’s loss. Also, an injunction may be imposed, stopping the production of products under a stolen trade secret. Criminal penalties include imprisonment or an unlimited fine. These sanctions can be applied to both forms of protection of the company’s trade secret. To obtain legal access to a trademark, it is necessary to obtain an agreement from its holder, so the owner of the secret can appoint a particular person to access and use the trade secret information. At the same time, a non-disclosure agreement between the licensor and licensee is signed and strictly observed.