Trade Secrets
Protect what truly gives value to your business
Trade secrets are one of the most powerful—and least used—tools within industrial property. Unlike other rights, they do not require registration to exist, but they do require strategic management to remain protected.
Their value lies precisely in their confidential nature: the less accessible the information, the greater the competitive advantage it can generate. However, this same characteristic means that protection depends actively on the owner, through contractual, organizational, and technological measures.
It is not enough to possess valuable knowledge; it must be controlled, access must be restricted, and it must be clearly defined who can use it and under what conditions. When properly managed, it can become a key asset for business growth and differentiation.
What is a trade secret?
Under Chilean law, a trade secret is any knowledge about products or processes whose confidential nature provides a competitive advantage. This definition includes not only technical aspects but also any information that, by not being publicly known, allows a company to differentiate itself in the market and make more efficient strategic decisions.
This includes technical, commercial, or strategic information that is not public and derives value precisely from being kept secret. In practice, this may include formulas, production methods, pricing strategies, customer databases, or even internal processes that optimize business operations.
Trade secrets are not limited to industrial processes: they may cover multiple types of key business information. Their scope is broad and flexible, allowing protection of assets that are not always eligible for registration but still represent the core of a company’s competitive value.
What type of information can be protected?
A trade secret may include:
- Manufacturing Processes
- Algorithms Or Software
- Customer Lists
- Commercial Strategies
- Financial Information
- Business Plans
- Know-How
According to trade secrets guidelines by the World Intellectual Property Organization (WIPO), this type of information can range from technical processes to market strategies.
Trade secrets in Chile are particularly relevant for companies where value lies not in registered assets, but in internal knowledge.
Requirements for protection
For information to be considered a trade secret, certain conditions must be met:
- It Must Not Be Generally Known Or Easily Accessible
- It Must Have Commercial Value Because It Is Secret
- Reasonable Measures Must Be Taken To Keep It Confidential
This last point is critical: it is not enough for information to be valuable; it must be actively protected.
A key advantage: no registration required
Unlike trademarks or patents, trade secrets do not require registration.
This provides two major advantages:
- Immediate Protection
- Potentially Unlimited Duration
A trade secret can remain protected as long as it remains secret, making it a long-term strategic tool.
Risks of trade secrets
The main risk is obvious: losing secrecy.
If the information is disclosed, protection is lost.
Additionally, the law sanctions the unauthorized acquisition, use, or disclosure of trade secrets, considering it a violation of the owner’s rights.
For this reason, this tool requires active—not passive—management.
How are trade secrets protected?
Protection is not automatic: it requires concrete measures.
Among the most important:
- Confidentiality Agreements (NDAs)
- Contractual Clauses
- Restricted Access To Information
- Internal Protocols
- IT Security Measures
In practice, a trade secret exists because it is protected.
Trade secret vs patent
A key strategic decision is choosing between trade secret or patent.
- A patent protects through registration but requires disclosure
- A trade secret protects without registration but depends on confidentiality
Trade secrets in Chile are particularly useful when:
- The technology does not meet patentability requirements
- Disclosure is to be avoided
- The knowledge can be kept confidential
Relationship with technology transfer
Trade secrets are a central asset within technology transfer in Chile.
They allow structuring:
- Know-How Licensing
- Collaboration Agreements
- Technology Agreements
Without prior protection, transfer loses value.
Strategic approach
Not everything should be registered.
In many cases, competitive advantage lies precisely in what is not disclosed.
For this reason, trade secrets must be evaluated as part of a comprehensive strategy for protecting intangible assets.
Frequently Asked Questions about
Trade Secrets
What is a trade secret?
It is confidential information that provides a competitive advantage and is protected as long as it remains secret.
Do trade secrets need to be registered?
No, protection does not require registration.
How long does protection last?
It can last indefinitely, as long as the information remains secret.
What happens if it is disclosed?
Protection is lost and the asset is no longer safeguarded.
How is it protected in practice?
Through contracts, internal measures, and control of access to information.
Protect your knowledge before it loses value
Trade secrets can be one of the most valuable assets of your business if properly managed.
Legal advice to protect, structure, and exploit your know-how safely.
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