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manufacturing company may want to keep secret a certain
manufacturing process that only a few key employees fully
understand, or a statistical analysis company might want to safeguard
an advanced model developed for in-house use.
Two of the previously discussed intellectual property tools—copyrights
and patents—could be used to protect this type of information, but
with these two major disadvantages:
Filing a copyright or patent application requires that you publicly
disclose the details of your work or invention. This automatically
removes the “secret” nature of your property and may harm your
firm by removing the mystique surrounding a product or by
allowing unscrupulous competitors to copy your property in
violation of international intellectual property laws.
Copyrights and patents both provide protection for a limited period
of time. Once your legal protection expires, other firms are free to
use your work at will (and they have all the details from the public
disclosure you made during the application process!).
There actually is an official process regarding trade secrets. By their
nature you don’t register them with anyone; you keep them to
yourself. To preserve trade secret status, you must implement
adequate controls within your organization to ensure that only
authorized personnel with a need to know the secrets have access to
them. You must also ensure that anyone who does have this type of
access is bound by a nondisclosure agreement (NDA) that prohibits
them from sharing the information with others and provides penalties
for violating the agreement. Consult an attorney to ensure that the
agreement lasts for the maximum period permitted by law. In
addition, you must take steps to demonstrate that you value and
protect your intellectual property. Failure to do so may result in the
loss of trade secret protection.
Trade secret protection is one of the best ways to protect computer
software. As discussed in the previous section, patent law does not
provide adequate protection for computer software products.
Copyright law protects only the actual text of the source code and
doesn’t prohibit others from rewriting your code in a different form

