Shannon's Law refers to a principle in information theory that defines the maximum data transmission rate of a communication channel. Named after Claude Shannon, the founder of information theory, it states that the capacity of a channel is determined by its bandwidth and the level of noise present. This law helps in understanding how much information can be reliably transmitted over a given medium. The formula for Shannon's Law is C = B log2(1 + S/N), where C is the channel capacity, B is the bandwidth, S is the signal power, and N is the noise power. This equation illustrates the trade-off between bandwidth and noise, guiding engineers in designing efficient communication systems.