Final answer:
A trade secret is confidential business information that provides a competitive edge and is strongly protected by the company. Examples include production methods and business strategies. Trademarks, on the other hand, are public symbols representing a company's goods or services.
Step-by-step explanation:
A trade secret is information used in a business, generally unknown to the public, that the company has taken strong measures to keep confidential. Trade secrets can include methods of production, business strategies, customer lists, or any other proprietary information that gives a business a competitive advantage. Protecting these secrets is crucial, as their exposure can lead to losses or diminished competitive standing.
Industrial espionage refers to the illegal and unethical acquisition of trade secrets by individuals or companies. An example, like Slater's use of technological information originally kept secret by its owners, highlights the significance of safeguarding these valuable assets. Examples of legal protections for trade secrets include non-disclosure agreements and restrictive covenants.
A related concept is a trademark, which is an identifying symbol or name for a particular good that can only be used by the firm that registered that trademark. Unlike trade secrets, trademarks are meant for public recognition and are not kept secret.