GCFA · Question #209
Which of the following is a formula, practice, process, design, instrument, pattern, or compilation of information which is not generally known, but by which a business can obtain an economic…
The correct answer is D. Trade secret. A trade secret is confidential business information that provides a competitive advantage and is protected by keeping it secret, not through public registration.
Question
Which of the following is a formula, practice, process, design, instrument, pattern, or compilation of information which is not generally known, but by which a business can obtain an economic advantage over its competitors?
Options
- ACopyright
- BUtility model
- CCookie
- DTrade secret
How the community answered
(56 responses)- A14% (8)
- B7% (4)
- C4% (2)
- D75% (42)
Why each option
A trade secret is confidential business information that provides a competitive advantage and is protected by keeping it secret, not through public registration.
Copyright protects original creative works such as literature, music, and software from reproduction, not confidential business information that provides competitive advantage.
A utility model is a registered intellectual property right similar to a patent, used for minor technical innovations, which requires public disclosure rather than secrecy.
A cookie is a small data file stored by a web browser to track user sessions and preferences, which is a technical web mechanism unrelated to intellectual property protection.
A trade secret is defined as any formula, practice, process, design, or compilation of information that is not generally known and gives a business an economic advantage over competitors. Unlike patents or copyrights, trade secrets are protected solely through confidentiality - they require no registration and remain protected as long as they are kept secret. Classic examples include the Coca-Cola formula and Google's search algorithm.
Concept tested: Trade secret definition and intellectual property classification
Source: https://www.wipo.int/tradesecrets/en/
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