Trade Secrets
Definition
Confidential business information that provides a competitive advantage, including formulas, processes, methods, customer lists, and supplier terms. Unlike patents, trade secrets are not publicly disclosed and are protected through confidentiality agreements and security measures rather than registration.
Complementary Terms
Concepts that frequently appear alongside Trade Secrets in practice.
The sale of a company to a strategic buyer, typically another company in the same or adjacent industry. Trade sales are the most common exit route for venture-backed and private equity-backed businesses and often command premium valuations due to strategic synergies.
Creations of the mind that are legally protected, including patents, trademarks, copyrights, and trade secrets. IP is a critical intangible asset category for technology and innovation-driven firms and can be licensed, sold, or used as collateral for financing.
A contractual arrangement in which one party agrees not to engage in competitive activity for a specified period and within a defined geographic area. Non-compete agreements are recognised as identifiable intangible assets in purchase price allocations and serve to protect acquired customer relationships, trade secrets, and human capital.
A legally binding contract that establishes confidentiality obligations between parties sharing proprietary information. NDAs are essential tools for protecting trade secrets and other sensitive intangible assets during due diligence, partnership discussions, and employee onboarding.
A non-physical asset that derives value from intellectual or legal rights, or from the competitive advantage it provides. Examples include brands, patents, software, customer relationships, data, organisational know-how, and human capital.
The accumulated stock of codified and tacit knowledge within an organisation, encompassing technical expertise, process documentation, proprietary methods, and institutional memory. Knowledge capital is a core intangible asset that directly influences innovation capacity, operational efficiency, and competitive advantage.
A contractual clause that limits a party's ability to engage in specified activities, typically restricting competition, solicitation of clients or employees, or use of confidential information after the termination of an employment or business relationship. Restrictive covenants are common in M&A transactions and executive employment agreements, and their enforceability varies significantly across jurisdictions.
Proprietary datasets, analytics capabilities, and data infrastructure that provide competitive advantage. Data assets include customer behavioural data, market intelligence, training datasets for AI models, and proprietary databases that improve decision-making or product quality.
Put this knowledge to work
Use Opagio's free tools to measure and grow the intangible assets that drive your business value.