When you have a useful invention should you file for a patent or maintain it as a trade secret? A comparison of the advantages and disadvantages of patents and trade secrets are given in the table below.
|
Characteristic |
Patents |
Trade secrets |
|---|---|---|
|
Public or private? |
Public. A patent can be kept secret for 18 months after it is filed, after which it must be published. |
Private. Trade secrets must never be made publicly available. |
|
Owner’s legal action |
Easier. The government has put its stamp of approval on the invention. |
Harder. The owner must prove that the invention qualifies as a trade secret and that the defendant did not independently invent it. |
|
Cost |
High. There is a significant cost to “prosecute” a patent, which includes the attorney costs, filing costs, and costs to address all patent office rejections and actions. |
None. |
|
Protection from theft |
Harder. The invention is described in detail to the public. |
Easier. The invention is kept secret. |
|
Time |
Limited. The government grants rights for 17 to 20 years after which anyone can produce the invention. |
Unlimited. As long as the invention is kept secret. |
|
Ownership |
Restricted. The owners are only the patent holders who are on record with the patent office. |
Unrestricted. If the invention is created independently, any number of inventors and owners can exist. |
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