Coca-Cola's formula is locked in a vault in Atlanta. That is not a marketing gimmick. It is a legal strategy. A trade secret is any confidential business information that gives its owner an edge over competitors. Unlike patents, trade secrets are not registered. They last as long as the secret is kept. No filing fees, no expiration date, but also no protection if the secret leaks.

The law varies by country. In the United States, the Defend Trade Secrets Act of 2016 allows companies to sue in federal court. In the European Union, the Trade Secrets Directive harmonized rules across member states. To qualify, information must be secret, have commercial value, and be subject to reasonable efforts to keep it secret. Leaving a formula on a shared drive is not reasonable.

Typical trade secrets

• Recipes and formulas, like KFC's eleven herbs and spices.
• Manufacturing processes, like how a chipmaker etches silicon.
• Customer lists and pricing algorithms.
• Negative know-how: what does not work.

Employees sign nondisclosure agreements. Competitors hire private investigators. When a secret walks out the door, courts can issue injunctions and award damages. But once it is on the internet, it is gone forever.