In the today’s dynamic world enterprise can be break and make when it comes on intellectual property (IP) protection. Trade secret are the confidential data of the organizations. A trade secret may be anything like design, pattern, formula, product or any secret data which cannot be access by any other who are not authorized to disclose or use it and maintain the secrecy that a company different from another (Francesco, Conti and Aleksandra, 2017). This essay will argue that trade secret is an effective business strategy for an organization because it helps in claiming for trade secret theft, provides a competitive advantage and maintain organizational structure.
A possible function of trade secret could be the claiming of data or any secret of the business organization. However, trade secret theft has become the major issues in today’s world because of globalized market, new technology invention, highly skilled workforce. Reserve engineering is one of the process through which we can learn the knowledge of how it is human-artifact. This has been regarded as an appropriate way of obtaining information through the easy analysis of it. The most important reason of reverse engineering is that we can learn important data and can make the perfect and competing product in the market (Samuelson and Suzanne, 2002).
In addition trade secrets is the most important intellectual property that secure company for long term goals and are the most valuable assets of a company as they are flexible and secure intangible assets (Syed, 2014). Some of the businesses, are likely to have a patent of their trade secrets (Friedman, Landes and Posner, 1991). This justifies the need for maintaining trade secrets which can be used to detect theft. Therefore trade secrets help in identifying theft and can hence protect companies business. Thus, there is the convincing evidence that supports the idea that having the trade secret intellectual property might be the supportive factor to claim the trade secret theft of the business organization.
Trade secret can be one of the tool to protect good competitive environment of the organization. Organization are likely to use intangible assets i.e. trade secret rather than physical assets for sustainability of business and for most competing products (Joe and sion, 2011). The confidential information might provide the competitive advantages over the rival business for example Coca-Cola’s soft drink formula, KFC’s chicken seasoning recipe. It established protocol from the beginning to protect the trade secret which leads to become the most competing business throughout the world. When the organization give authorization to make product of one company idea to other, trade secret law can plays vital role to preserve the company’s ideas so that it cannot be used by other organization (Thomas M, 1978). Thus, it can likely clear that with trade secret company can maintain good competitive environment with the help of trade secret.
Another important aspects of trade secret is to maintain organizational structure. The organization success, profitability and longevity is based on leadership and effective strategy, which is based on the organizational structure i.e. various department and its dedication towards the profit margin and being competent in the global market (William, Victoria and Allison,2015). In this content, it is clear that
In conclusion, trade secrets include any privileged information that can provide your company with an advantage and maintain the identity in the market