MARICHU APILADO

JULY 27, 2020

Trade Secret (Question 1)

Answer:

The fourth type of intellectual property, in addition to patents, trademarks, and copyrights,
is trade secrets. Trade secrets consist of information and can include a formula, pattern,
compilation, program, device, method, technique or process. To meet the most common
definition of a trade secret, it must be used in business, and give an opportunity to obtain an
economic advantage over competitors who do not know or use it. In case of Mr. Ramos the
formula to develop the filament is the property of CDE electric and it is against the law to
share and to give to X electric and develop them the same formula, aside from that before he
works to X electric there is no mention about the filament that he worked before he was
hired. It is unethical to share it that kind information because it is the trade secrets of CDE
electric.

Even if Mr. Ramos wants to shared it and develop for X Electric he needs continue to require
that everyone sign confidentiality agreements. As already mentioned above, if you
voluntarily give any trade secret information to someone outside your company, you must
have the recipient sign an appropriate confidentiality agreement. In addition, you should get
in the habit of having all employees, consultants, independent contractors and potential
business partners routinely sign confidentially agreement. I think John follow this rule when
he works the filament for CDE Electric. It would be a shame to lose protection for your trade
secrets by not practicing what you preach. Having a trade secret policy without actually
enforcing it on a daily basis will have a negative impact on your company's ability to protect
its trade secrets in court.