Final answer:
The tech startup should either patent their unique algorithm or keep it as a trade secret, as these options provide legal protection against competitors.
Step-by-step explanation:
The tech startup should categorize and handle their unique algorithm by patenting it. Patent law gives the inventor the exclusive legal right to make, use, or sell the invention for a limited time. This would provide the startup with the necessary legal protection and allow them to prevent competitors from copying or using their algorithm without permission.
Keeping the algorithm as a trade secret is another option. Trade secrets, like the formula for Coca-Cola, are not protected by copyright or patent law but are kept confidential by the company. However, keeping it a secret might be challenging and there's always a risk of it being discovered or leaked.
Sharing the algorithm with competitors or publishing it openly would not be advisable, as it would eliminate the startup's competitive advantage in the market.