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Description: By: World Intellectual Property Organisation (. What is a Trade Secret? How are Trade Secrets Protected? Example, precautionary Measures to be Taken by Your SME. Patents or Trade Secrets? Cases in Which Your SME May Benefit from Trade Secret Protection. Broadly speaking, any confidential business information which provides an enterprise a competitive edge may be considered a trade secret. Trade secrets encompass manufacturing or industrial secrets and commercial secrets. The unauthorized use of such information by persons other than the holder is regarded as an unfair practice and a violation of the trade secret.