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Competitive advantage is often acquired by simply keeping strategic information confidential or secret as outsiders are prohibited by law (in most countries) to use or copy secret or confidential information without the consent of the owner of that information.
The law of trade secrecy discourages espionage/unlawful access to such information by punishing those found guilty of accessing information by improper means.
Trade secrets are but one tool amongst a collection of different intellectual property tools and when used appropriately complement and strengthen the other tools.
This article discusses the need for enterprises to build strong employee loyalty as a key element in thier strategy for protecting trade secrets.The article draws attention to the principle ways that could be followed to obtain trust and commitment from employees, thus discouraging them from unauthorized disclosing the trade secrets of an enterprise.The adage “information is power” is very relevant to the whole concept of strategic use of trade secrets.Since the market is changing so rapidly, and the fact that trade secrets can be independently discovered by others, enterprises are advised not to rely only on their existing trade secrets but to make continuous efforts to develop new trade secrets in order to remain competitive.In addition, this will be helpful in case of unwanted disclosure because the enterprises would be able to rely on a newer and better product or plan.
When used strategically, trade secrets often provide a significant competitive advantage in the market place.