Trade secrets are intellectual property: information (technical or non-technical) that can be used in operating a business or other enterprise that is valuable and secret that it creates an actual or potential economic advantage over others.

The concept of the protection of trade secrets goes far back — under Roman law a person who induced someone to divulge information about their master’s commercial affairs was subject to punishment; modern trade secret law dates back to the Industrial Revolution in England.

The rise of the information economy has made trade secrets increasingly important, as well as more likely to be stolen (as has a more mobile workforce and use of consultants and contractors) and it is a growing area of litigation.

Trade secret laws do exist in Canada. In the workplace, confidential information may not simply be labeled as such on a data sheet and the ingredients not be disclosed (as is the case in the US).

In Canada, a company has to apply for an exemption to the Hazardous Material Review Commission. The commission determines:

• Whether it is a legitimate trade secret (which they almost always do).
  
• Reviews the entire data sheet for accuracy. The company still has to disclose the inherent hazards and potential health effects of the ingredient(s) and describe the chemical nature of that secret ingredient.