Trade secret theft occurs when confidential business information, such as formulas, practices, or processes, is unlawfully acquired or disclosed. This information is crucial for a company's competitive advantage and is protected by law. When someone steals a trade secret, it can lead to significant financial losses and damage to the original owner's reputation. Common methods of trade secret theft include industrial espionage, employee misconduct, or hacking. Companies often implement security measures, such as non-disclosure agreements (NDAs) and employee training, to safeguard their trade secrets. Legal actions can be taken against individuals or organizations that engage in this type of theft.