A grey area between two competing concepts has been playing out in the courts the world over, explains Shaukat Ali of Dennemeyer & Associates.
Trade secrets are among a company’s most valuable assets, safeguarding competitive advantages in industries ranging from technology to manufacturing.
Krispy Kreme’s doughnut recipe, WD-40’s composition and KFC’s signature spice blend are a few examples of brand-defining specifications kept under close lock and key.
Confidential resources such as source code, technical processes and customer data can be just as crucial as patents or trademarks.
While laws impose strict penalties for employees who unlawfully disclose trade secrets, including fines and imprisonment, many jurisdictions also protect whistleblowers who expose corporate misconduct.
This creates a legal and ethical grey area where intellectual property (IP) protection and whistleblower rights collide. Courts and legislators have begun addressing this tension more directly, shaping the evolving landscape of IP and corporate accountability.
Protection for whistleblowers
Most countries protect trade secrets as long as they remain confidential and have commercial value.
In the United States, the Defend Trade Secrets Act (DTSA) of 2016 provides a federal civil remedy for trade secret theft, imposing fines of up to $5 million or three times the value of the misappropriated information alongside potential damages.
However, the DTSA also offers immunity from liability for...
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