economics Paradigm Challenge

Just selling your product can legally kill your trade secret, even if nobody actually figured out how your secret works.

April 2, 2026

Original Paper

Trade Secret Law's On-Sale Bar

Camilla Alexandra Hrdy

SSRN · 6506705

The Takeaway

Most businesses believe a trade secret is safe as long as it remains hidden, but this study reveals a hidden 'ready ascertainability' rule. If a product on the market could theoretically be reverse-engineered, the law may treat the secret as expired the moment the product is sold, regardless of whether anyone has actually figured it out yet.

From the abstract

<p>The on-sale bar is a well-established rule in patent law. Once an invention has been placed “on sale” for over a year, it cannot thereafter be patented. Trade secret law, at first glance, is different. Trade secret law can indefinitely protect information relating to a product, even after it has been marketed. Consider the famous example of the Coca-Cola formula. The formula is still claimed as a trade secret, even though the soft drink has been sold to the public for over a century. If emplo