Trade Secret
π 2026 Update: Changes Impacting Trade Secrets and Intellectual Property
Since the original article was published, several important changes have taken place regarding trade secrets and intellectual property in the U.S. These updates affect various aspects of patent and trademark processes, as well as the handling of research and development costs. The earlier article continues further down the page.
π Foreign Applicant Representation Requirement
A new rule took effect on July 20, 2026. It requires all patent applicants and owners living outside the U.S. to be represented by a registered U.S. patent practitioner. This change aims to improve the administration of U.S. patents and ensure compliance with local laws.
π° Patent and Trademark Fee Adjustments
Starting January 19, 2025, the U.S. Patent and Trademark Office adjusted patent fees. These changes were made to better manage the patent system.
On January 18, 2025, trademark fees also saw an update. This helps support the efficient operation of trademark registrations.
π R&D Expenditure Changes
The One Big Beautiful Bill Act of 2025 introduced new tax rules under Section 174A. This allows businesses to fully expense domestic research and experimental costs. This change is effective for tax years starting after December 31, 2024, and can significantly impact how businesses manage their research budgets.
π Intellectual Property's Economic Impact
In 2024, industries focused on intellectual property accounted for around 44% of private sector output in the U.S. They also made up about 33% of private sector jobs. This highlights the vital role intellectual property plays in the economy.
π Key Points Summary
- π New representation rules for foreign patent applicants effective July 20, 2026.
- π° Patent and trademark fee adjustments began in early 2025.
- π Full expensing of R&D costs reinstated under Section 174A.
- π IP-intensive industries significantly contribute to the U.S. economy.
π‘ Tips for Navigating Trade Secrets and Intellectual Property
Review your specific situation with your attorney to ensure you understand the best course of action.
π Understand Patent Eligibility
To qualify for a patent, your invention must be novel, non-obvious, and useful. Make sure to assess your invention against these criteria before applying.
π Keep Track of Maintenance Deadlines
For patents, maintenance fees are due at 3.5, 7.5, and 11.5 years after the patent is granted. Staying on top of these deadlines is crucial to maintaining your patent rights.
π Register Your Trademark Properly
When applying for a trademark, provide a clear description of the mark and its use in commerce. This helps avoid delays in the registration process.
π Know Your Copyright Registration Deadlines
While there are no strict deadlines for registering a copyright, doing so is necessary to pursue legal action for infringement. Timely registration can strengthen your position in disputes.
π Utilize Free Resources
Make use of the free resources offered by the USPTO and the Small Business Administration. They provide valuable guidance on intellectual property matters that can help you navigate the application processes.
π Ranked by User Reviews (2026)
This section covers services that assist with legal aspects of trade secrets and intellectual property. The order is based on Trustpilot data checked in October 2026. Ratings can change over time, and itβs essential to remember that unhappy customers often leave more reviews, which can affect the overall rating.
π₯ 1. Rocket Lawyer
Rocket Lawyer holds a Trustpilot score of 4.5. It has been known for its online legal document creation and affordable legal services. However, some users find the subscription model costly for those who do not use it frequently.
π₯ 2. LegalZoom
LegalZoom has a Trustpilot score of 4.6. It is recognized for its business formation services and intellectual property protection. Some users report delays in processing times, which can be a drawback for those needing quick assistance.
π₯ 3. LegalShield
LegalShield has a Trustpilot score of 4.4. It is known for providing legal subscription services and access to legal advice. Reviewers have mixed experiences with customer service responsiveness, which could impact user satisfaction.
π Free Government Resources
The USPTO and the Small Business Administration (SBA) offer free resources to assist with intellectual property matters. These include guides, webinars, and counseling services specifically designed for small businesses.
π What to Compare When Choosing Services
- π Service ratings and review counts.
- πΌ Types of legal services offered.
- β³ Processing time averages for applications.
- π² Cost structure and potential hidden fees.
- π Availability of free resources and assistance.
β Frequently Asked Questions
β What is a trade secret?
A trade secret is any information that provides a business advantage over competitors who do not know or use it. This can include formulas, practices, processes, or designs.
π How can I protect my trade secrets?
To protect trade secrets, implement confidentiality agreements and limit access to sensitive information. Training employees about the importance of safeguarding these secrets is also essential.
π What are the benefits of registering a trademark?
Registering a trademark provides legal protection against unauthorized use. It also helps establish brand recognition and can increase the value of your business.
β° How long does it take to process a patent application?
As of fiscal year 2026, the average total pendency for a utility patent is about 27.9 months. This duration can vary based on the complexity of the application.
π Can I file a copyright for a work created by someone else?
No, you must be the original author or have permission from the author to register a copyright for a work. This ensures that the rights are properly assigned.
π How do I know if my invention is patentable?
To determine if your invention is patentable, it must be novel, non-obvious, and useful. Conducting a patent search can also help assess if similar inventions already exist.
βοΈ Recent Cases Related to Intellectual Property
Recent court rulings have further shaped the landscape of trade secrets and intellectual property. These decisions often involve issues of patent eligibility, trademark disputes, and copyright infringement.
- Court dismisses bid protests from International Business SalesUnited States Court of Federal Claims Β· June 3, 2026
- Delaware Court Rules on Paramount Global Shareholder DisputeCourt of Chancery of Delaware Β· June 5, 2026
- Court rules in favor of Aclarity Genomics in BioSkryb caseNorth Carolina Business Court Β· June 8, 2026
- Delaware court rules on CMD Global's claims against bankSuperior Court of Delaware Β· June 5, 2026
For more recent rulings, feel free to browse more rulings on the news page.
End of October 2026 Update
A trade secret is primarily defined by the Uniform Trade Secrets Act (UTSA). Essentially, the trade secret is information such as a formula, pattern, program, method, process, technique, or similar piece of information that produces economic value. However, the information only produces actual or potential economic value because it is not accessible by other parties who could also generate economic value with its use.
Before the UTSA was passed, the use of a secret in trade was an offense under a common law tort known as the Restatement of Torts. Section 757 and 758 of this tort laid out general policies, and the majority of U.S. Courts adopted the trade secret tort. Comment (b) of §757 is still accessed regularly and determines what qualifies as a secret in trade. A secret in trade is recognized depending on the following:
· the amount of information about the secret known outside of the business
· the amount of information known by employees for the business
· the measures taken by the business to protect the information from exposure
· the value of the secret to the business compared to competitors
· the difficulty involved in acquiring the information and duplicating the information
In order to submit a trade secret claim, the information needs to qualify for protection in the first place. Secondly, the party holding the secret needs to prove that they took reasonable steps to keep in the information private. Thirdly, the party holding the secret must prove that the secret was not unlawfully obtained from another party.
There are two cases when a secret in trade is unlawfully obtained. The information was unlawfully obtained through improper means or there is a breach of confidence. For example, if an employee accessed information and sold the information to another company, the second company committed breach of confidence.
It is not illegal to obtain a trade secret if the information is discovered independently, reverse engineering leads to the discovery, or the company holding the secret failed to take proper steps in protecting the secret.
A trade secret does not last for a specific number of years like a patent. The secret in trade continues indefinitely until disclosure of the secret is reached lawfully. An inventor has the choice to choose between a patent and a protection of the secret, but the information cannot by dually protected at the same time.
Obtaining a secret in trade does not always exist as a crime only under tort law. It qualifies as a federal crime in some cases. The crimes becomes a federal crime when it violates the Economic Espionage Act of 1996.
A recent trade secret violation occurred when Kolon Industries stole information about the manufacturing process used by DuPont for Kevlar para-aramind fiber. Kolon is headquartered in South Korea and makes a bullet-proof product called Hercron. Kolon wanted to improve its products, so they targeted former employees that formerly worked for DuPont to receive information on the secrets.
They soon received information about the secret manufacturing process used by DuPont and replicated the process in three years.