What are the advantages and disadvantages of holding a trade secret?

Printer-friendly versionPDF version
Category: 

 

 PatentUtility ModelTrade Secret
Advantages
  • exclusive right
  • effective tool against imitators
  • protection up to 20 years, which is generally considerably longer when compared to utility models
  • exclusive right
  • effective tool against imitators
  • lower registration costs when compared to patents
  • no registration costs 
  • protection not limited in time
  • no disclosure required
Disadvantages
  • costs for registration can be high 
  • the invention must be disclosed in the application
  • not available in all countries
  • costs for registration
  • shorter protection than patents
  • not available for all kinds of inventions
  • often not an effective tool for product inventions
  • limited remedies available 
  • not easily enforceable
  • can be patented by others