Licensing of Trade Secrets

Licensing of trade secrets involves granting permission to another party to use a secret formula, process, or information that gives a business a competitive edge. This agreement allows the licensee to benefit from the trade secret while the licensor retains ownership. Licenses can be exclusive, meaning only one party can use the secret, or non-exclusive, allowing multiple parties to use it. Such arrangements are usually formalized through contracts, which outline the terms, duration, and any compensation involved. This approach ensures that the trade secret remains protected while enabling its strategic use in the marketplace.