Questions derived from the CISSP – CISSP ISC2 Self-Test Software Practice Test.
Objective: Information Security and Risk Management
SubObjective: Understand professional ethics
Item Number: CISSP.5.18.2
Single Answer, Multiple Choice
Which statement is true of trade secret law?
- Trade secret law involves protection of an idea’s expression.
- Trade secret law protects information that is vital to a company’s survival and profitability.
- Trade secret law involves protection of either a word or a symbol that is used to represent the company.
- Trade secret law promotes the use of information between different companies to ensure a homogeneous environment.
B. Trade secret law protects information that is vital to a company’s survival and profitability.
Trade secret law protects information that is vital to a company’s survival and profitability. Trade secret law preserves the proprietary information pertaining to a company’s business. Trade secrets provide a company with a competitive advantage. Special skill and talent is required to develop trade secrets. The Trade Secret Act qualifies company information as a trade secret only if the information fulfills the following conditions:
- The information must not be easily accessible.
- The information must have economic value for the company’s competitors.
- The information must be protected by the company using all reasonable means.
The following are examples of company trade secrets:
- Customer identities and preferences
- Product pricing
- Marketing strategies
- Company finances
- Manufacturing processes
- Other competitively valuable information
Unlike a copyright, a trade secret does not protect either an idea or an expression. Copyright law protects an idea’s expression rather than the idea itself. The ideas are protected by the use of patents, and the corresponding expression is controlled by copyrights.
Trademark refers either to a word or to a symbol that is used to represent a company to the world. Trademarks are protected because each trademark is a unique symbol to represent the company, and the organization has spent time and effort to develop a trademark.
Trade secret law prevents unauthorized disclosure of a company’s confidential information and does not ensure a homogeneous environment.
Many companies require their employees to sign nondisclosure agreements (NDAs) to ensure trade secret protection. A resource can be protected by trade secret law if it is not generally known and if it requires special expertise, creativity, or expense and effort to develop it.
CISSP All-in-One Exam Guide, Chapter 10: Law, Investigation and Ethics, Trade Secret, p. 774.