The consequence is to provide compensation in the form of royalties to the owner of the Trade Secrets. With the licensing system, the licensee must meet the requirements proposed by the licensor. One of them is secret formulas such as food recipes. The license granted by the owner of the Trade Secrets is usually stated in a contract or what is commonly called a license agreement.
In conclusion, in Trade Secrets, information is protected. This information is in the field of technology and business, has economic value, and is kept confidential by the owner. As long as the owner keeps it secret and makes efforts to protect its confidentiality, then during that time, legal protection applies.
A license agreement as the basis for determining future business development steps that contain the rights and obligations of the parties is usually realized in the form of standard contracts. Although embodied in a contract, the license agreement must still be subject to Trade Secrets provisions. The license agreement provides legal protection for both parties so that no one is harmed by providing justice in the distribution of rights and obligations.
