A trade secret is any confidential business information that provides a competitive edge. This can include formulas, practices, processes, designs, or any other information that is not generally known to the public. Companies often take steps to keep these secrets safe, such as using non-disclosure agreements and limiting access to sensitive information. Trade secrets are protected by law, meaning that if someone misappropriates or discloses this information without permission, the affected company can take legal action. Unlike patents, trade secrets do not require registration, but they must be actively maintained to ensure their protection and value in the marketplace.