Tokenize Trade Secrets via patentagentip

An alternative for tokenization of intellectual property - tokenization of Trade Secrets through our programe TOKSECRETS (fractional ownership of trade secrets via nft).

What are Trade Secrets?

Trade Secrets are intellectual property rights on confidential information which may be sold (licensed as well). It is also able to be tokenized and thus offer for sale as a fractional unit of the whole. The thing about trade secrets is that it need not be told to the authorities (patent office) and also need not be registered. Thus nobody gets to know about the secret unless they are a token holder. So if you partake in the tokenization framework, then you will get access to the secret - sort of getting a license to practice the trade secret. And because of the fact that you need not register it, it becomes much easier to buy the token - unlike patents where you will need to register the purchase with the authority. Tokenizaton of trade secrets is another alternative for tokenization of intellectual property rights. At Patentagentip you may partake in the tokenization of trade secrets as most of their intellectual properties can be treated as trade secrets where there is no need to register it with the authorities. All it needs is where its purchase and selling is through a smart contract enabled by block chain mechanism. Of course there will be a need to have a confidential agreement between the buyer and seller where it is forbidden to disclose any trade secrets to a third party. Well, it looks like tokenization of trade secrets will take off in the near future as it is less of a hassle to do buying and selling of intellectual property rights.

What constitute a trade secret?

Article 39 of the TRIPS Agreement2, provides that member states shall protect "undisclosed information" against the unauthorised use "in a manner contrary to honest commercial practices" as long as the information is:

a secret in a sense that it is not generally known among or readily accessible to persons that generally deal with the type of information;

has commercial value because it is secret; and

has been subject to reasonable steps by the person in control of the information to keep it a secret.

Member countries of the TRIPS Agreement2 may have identified more criteria but Article 393 serves as a basis for the member states of the TRIPS Agreement4

Get in touch with us if you are interested in buying our token or be part of our Token Eco-System.

A little bit about Trade secrets that you should know

* It should be a very valuable secret that you can commercially deploy

* It should only be known by a few or probably only by one person

* Those who is suppose to know of the trade secret should take steps to safeguard them. This by way of making confidential agreements between the buyer and the seller. The agreement will bind both parties

One would be termed a violator of the trade secret protection act if the confidentiality clause is broken either advertantly or inadvertantly. The case can be brought to court.

Stealer of trade secrets can also be brought to court. In general, a company can choose to treat a business advantage as a trade secret. Trade secrets can also be sold but will require the buyer to adhere to a confidential agreement through a smart contract that is noted on a block chain mechanism.

Trade Secrets can either be of a technical nature or commercial information. Manufacturing knowhow, medical formulas, drawings, designs, advertising knowhow and knowledge of client's list can be treated as trade secrets. Combination of features with some available from the public domain may under certain circumstances be treated as trade secrets if knowledge of it can present a commercial advantage. Some very common terms like source codes and finalcial information make it to the list of trade secrets - it is because the scope of trade secret is so wide, it is easier to tokenize it.

There is no requirement to register it with the authorities - this make trade secrets a better bet for tokenizing. Further to that, you can also complement trade secrets with patents - parts that are better kept as secrets in combination with parts that are alright to be patented.

As trade secrets can be disputable, it is possible to establish a "Proof-of-Existance" on a block chain network which will show the owner of the trade secret and the time when it was created. WIPO PROOF used to be the vehicle where trade secrets can be documented but the service was discontinued since February 2022. Another way of proof of existence is to a smart contract hash of the certificate that is listed on a block chain.

Furthermore, trade secrets can be collaterize and is also possible for collaboration with entities that have the fund to do so.

In most legal institutions, there are legistrated special acts to protect the victim of trade secrets thefts. One of the most common protection law is that of the unfair competition. There are also specific provisions to protect the divulgent of confidential information. Also, an independant acquirer of trade secrets cannot be prosecuted if it can be proved that there was no theft. But like patents, any one can figure out a way to kill the cat and there is no way you can bring the culprit to court if he or she did it by reverse engineering of the idea which is already known in the public domain.

Methods to prevent disclosure of trade secrets

* Non disclosure agreements (NDA)

* Non competing agreements

* Keeping the last pieces of the puzzle

* Having a practicle means to identify it as proof of conception (this is important in case of disputes)

* Trade processes (methods) are normally fractionised at source so that nobody holds the whole secret - it is also lockaway.

* Misappropriation of trade secrets is a very serious offence in most jurisdiction - this to deter trade secret theft

Talking about the last piece of the puzzle - it is now available for trading of Intellectual Property NFT through the OpenSea platform.