Confidential information
...is information which you know but have kept secret. It might be technical "know-how" about how a process is best operated or a product should be made. It might be a list of client contacts which you've worked hard to compile. It might be a secret recipe for a very popular chocolate bar or soft drink. It could even be a list of new areas to branch into or new ideas to try out.
The law allows you to take action against people who "steal" such information against your wishes, or who misuse it to your detriment. This legal right is as much a type of intellectual "property" as is a patent or trade mark. Like a patent or trade mark it counts as one of your assets and you can sell it or grant licences for others to use it, typically in return for a royalty payment.
In order to acquire and retain the right, you have to:- record the information, so that if necessary you can establish what it was you knew; and
- keep it secret, and ensure anyone you share it with does the same.
Naturally enough, the information must belong to you (ie, it must not be stolen or copied from anyone else) to give you legal rights.
Secrets vs patents
Keeping technical information confidential can be an extremely effective way of protecting it, and in some cases may be more appropriate than patenting. A secret potentially lasts for ever whereas a patent only protects you for 20 years. A patent tells your competitors a lot about your technology and your commercial priorities; information which is kept confidential tells them nothing.
Secrets, however, can be hard to keep, particularly in large organisations or over long periods of time. Once disclosed they are lost for good. Relying solely on confidentiality is therefore a risky tactic. Many companies opt instead to patent their core technology but to keep secret the know-how associated with the best way of operating that technology, for example how to optimise the yield in a patented chemical process.
