What defines a trade secret?

A trade secret is defined as knowledge or information that derives independent economic value from not being generally known to, and not readily ascertainable by, others who can obtain economic value from its disclosure or use. This means that the secret has to provide a competitive edge because it is not accessible to the public and is valuable as a result.

Choosing the option that states the knowledge has economic value from not being generally known aligns perfectly with this definition. The uniqueness and confidentiality of trade secrets are what allow businesses to protect their proprietary information and maintain a competitive advantage in the marketplace.

In contrast, the other options fail to represent the essential aspects of what constitutes a trade secret. Knowledge without economic value cannot qualify as a trade secret since it doesn’t provide any competitive utility. General knowledge that is widely available cannot be protected as a trade secret because its readily accessible nature means it does not derive its value from exclusivity. Finally, patented information that is publicly accessible cannot be classified as a trade secret since it is disclosed to the public and does not meet the requirement of confidentiality that gives rise to its economic value.