Final answer:
The claim that trade secrets are not protected by federal law is false. The federal protection is provided by the Defend Trade Secrets Act of 2016 which allows companies to sue for trade secret theft.
Step-by-step explanation:
The statement that a trade secret is not protected by federal law is false. In fact, there is federal legislation that provides a level of protection for trade secrets. The Defend Trade Secrets Act of 2016 (DTSA) allows for trade secret holders to file a federal lawsuit for trade secret theft. This act supplements state-level trade secret laws which can vary across the United States. Trade secrets, such as the well-known formula for Coca-Cola, do not fall under patent or copyright law; instead, they are protected by being kept secret and through relevant laws against their theft and unauthorized disclosure. It is important for businesses to understand the distinction between different forms of intellectual property protection to safeguard their innovations and proprietary information.