Which factor is essential for information to qualify as a trade secret?

For information to qualify as a trade secret, it is essential that it is not generally known or readily ascertainable by others who could obtain economic value from its disclosure or use. This requirement is fundamental because the very nature of a trade secret is that it provides a competitive advantage to its holder, as it contains valuable information that others do not possess. If the information were widely known or easily obtainable, it would not serve its purpose as a trade secret and would lose its economic value as a confidential asset.

Maintaining the secrecy of this information is critical because it distinguishes trade secrets from other types of intellectual property. When businesses take reasonable measures to keep the information confidential, such as implementing non-disclosure agreements or restricting access to certain personnel, they enhance the status of that information as a trade secret. This is pivotal in legal protection against theft or misappropriation, which is intended to safeguard competitive edges in various industries.