Essential Guide: What Qualifies as a Protectable Trade Secret to Secure Your Competitive Edge

Protecting confidential business information is critical in today’s competitive market, but not every piece of information your company keeps private qualifies as a trade secret under the law. Understanding what actually counts as a protectable trade secret, and how to protect it, can make the difference between keeping your competitive edge or losing it.

What Is Considered a Trade Secret Under Florida Law?

In Florida, trade secrets are defined under the Florida Uniform Trade Secrets Act (FUTSA). To qualify, information must:

• Have independent economic value because it is not generally known to the public or competitors.
• Be subject to reasonable efforts to maintain secrecy by the business that owns it.

This means the information has to give your business a competitive advantage and you must take active steps to keep it confidential.

Examples of Information That Can Be Trade Secrets

Many types of business information can qualify as trade secrets if they meet the criteria above. Common examples include:

• Customer lists and pricing strategies
• Manufacturing processes or formulas
• Software code or proprietary algorithms
• Marketing and business plans
• Supplier agreements and sourcing methods
• Confidential financial data

However, things that are already public knowledge, or that competitors can easily figure out, will not qualify.

Do Customer Lists Qualify as Trade Secrets?

This is one of the most common questions business owners ask. The answer is: sometimes.

A basic list of customer names that anyone could find through public sources will not qualify, but a carefully curated list with detailed client information, preferences, purchase histories, or contact data not available publicly often does qualify as a trade secret. The key factor is whether the list provides a unique competitive advantage and whether you’ve taken steps to keep it confidential.

What Efforts Count as “Protecting” a Trade Secret?

Even if information has economic value, it won’t be treated as a trade secret unless you actively protect it. Courts typically look for things like:

• Using confidentiality agreements with employees, contractors, and partners
• Restricting access to sensitive files and databases
• Password protection and secure storage methods
• Company policies on information sharing and confidentiality
• Training employees on handling sensitive data

If you fail to take precautions, a court may rule that your information is not a trade secret, even if it would otherwise qualify.

How Do You Prove Someone Misused a Trade Secret?

If you believe a former employee, competitor, or contractor misappropriated your trade secret, you must show:

1. That the information qualified as a trade secret.
2. That you took reasonable measures to protect it.
3. That the defendant acquired, disclosed, or used it through improper means (such as theft, breach of confidentiality, or misrepresentation).

Courts can issue injunctions, award damages, and in some cases even order attorneys’ fees to the prevailing party.

Why Trade Secret Protection Matters for Businesses

Trade secrets can often be more valuable than patents or copyrights because they last as long as you maintain confidentiality. For many businesses in Florida, from tech startups to real estate firms to manufacturers, trade secrets form the backbone of long-term success. Losing that protection through inaction or poor planning can have devastating consequences.

Protecting Your Business’s Competitive Edge

If you are wondering whether your business information qualifies as a trade secret or you need to enforce your rights in court, it’s best to consult with an attorney experienced in business litigation and trade secret disputes. An attorney can help you:

• Draft confidentiality and non-compete agreements
• Put the right protections in place for your sensitive data
• Pursue legal remedies if someone misappropriates your trade secrets
  

Final Thoughts

The bottom line: not every piece of confidential information is a trade secret, but the right information with the right protection can be. Recognizing this distinction is critical for protecting your business and ensuring that the time, money, and effort you invest is not unfairly taken by others.

If your company is dealing with a trade secret issue or you want to ensure your business is protected before a problem arises, contact our experienced business litigation attorneys in Miami at 305-570-2208.

You can also reach our founding attorney, Eduardo A. Maura, at eduardo@ayalalawpa.com.

Schedule a case evaluation online here.

The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case.