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Copyright vs Trade Secret: Which Protection Applies to Your IP?

Copyright and trade secrets protect different aspects of your work. Understanding which applies — and when to use both — is key to a solid IP strategy.

Updated February 20268 min readWritten by the immut team

Key Takeaway

Copyright protects the expression (how something is written, coded, or designed). Trade secrets protect the underlying confidential information (methods, formulas, data). For many types of IP — especially software — you should use both. Blockchain timestamps strengthen either by proving creation dates.

Side-by-Side

Copyright vs Trade Secret: Quick Comparison

FactorCopyrightTrade Secret
What it protectsThe expression/form of a workConfidential information
Registration neededNo (automatic in UK/EU)No (arises automatically)
DurationLife + 70 yearsIndefinite (while secret)
DisclosureWork can be publishedMust stay confidential
Independent creationNot infringementNot misappropriation
Copying protectionYes — stops exact copyingNo — prevents misappropriation only
Cost to establishFree (automatic)Free (automatic + security costs)
Best forCode, designs, text, creative worksProcesses, formulas, data, methods

Detailed Analysis

Understanding Each Option

Copyright

Copyright automatically protects original literary, dramatic, musical, and artistic works — including software code, documentation, and databases. It prevents unauthorised copying of the way something is expressed, but not the underlying ideas.

Advantages

  • Automatic — no registration required in UK/EU
  • Long duration — life of author plus 70 years
  • Work can be publicly shared while remaining protected
  • Prevents copying, adaptation, and distribution
  • International protection via Berne Convention

Limitations

  • Only protects expression, not underlying ideas
  • Doesn't prevent independent creation of similar works
  • Can be difficult to prove creation date without evidence
  • Doesn't protect methods, processes, or formulas
  • Fair dealing/use exceptions allow some copying

Trade Secret

Trade secrets protect any commercially valuable information that is kept confidential. Unlike copyright, trade secrets can protect ideas, methods, processes, and data — not just expression. But the information must remain secret.

Advantages

  • Protects ideas, methods, and data — not just expression
  • Lasts indefinitely (while secret)
  • No registration or disclosure required
  • Covers broad range of business information
  • Strong legal remedies for misappropriation

Limitations

  • Lost entirely if the secret becomes public
  • Must maintain ongoing security measures
  • Harder to prove without proper documentation
  • Cannot share or publish the protected information
  • No protection against independent development

Decision Guide

When to Use Each

Use Copyright When

  • You've created software code, documentation, or designs
  • Your work will be published or shared publicly
  • You need to prevent exact copying
  • The value is in how something is expressed or written
  • You want automatic, long-lasting protection

Use Trade Secrets When

  • The value is in the underlying method or process
  • The information must stay confidential to retain value
  • You want protection for formulas, algorithms, or data
  • Patent protection isn't appropriate or affordable
  • You want indefinite protection without disclosure

Better Together

Using Both for Maximum Protection

Copyright and trade secrets often protect different aspects of the same work. Here's how to layer them:

1

Software: Copyright protects the code itself; trade secrets protect the algorithms, methods, and know-how behind it

2

Databases: Copyright protects the structure and arrangement; trade secrets protect the data and how it's compiled

3

Designs: Copyright protects the visual expression; trade secrets protect the manufacturing process

4

Timestamp everything with blockchain to prove creation dates for both copyright and trade secret claims

Proving Your Rights with immut

Both copyright and trade secrets arise automatically — but proving when you created something is critical for both. Blockchain timestamps from immut provide court-admissible evidence of creation dates, strengthening copyright claims and satisfying the documentation requirements for trade secret status. From £10 per timestamp.

FAQ

Frequently Asked Questions

Can the same work be protected by both copyright and trade secrets?

Yes. Software source code is a common example — copyright protects the expression, trade secrets protect the underlying logic and methods. Using both provides complementary protection.

Does copyright require registration in the UK?

No. In the UK, copyright arises automatically when a qualifying work is created. However, proving when you created the work can be challenging — blockchain timestamps solve this.

What happens if my trade secret becomes public?

Trade secret protection is permanently lost once the information becomes publicly available. That's why some IP is better protected by copyright (which survives publication) and why keeping secrets confidential is critical.

Does copyright protect my app's features?

Copyright protects how the app is coded and designed, not the features or functionality themselves. To protect the underlying methods, you need trade secret protection or patents.

Need Help Choosing the Right IP Protection?

Book a call with our team to discuss which approach is best for your specific situation.