Entrepreneurship and Small Business (ESB) Certification Practice Exam

George has a secret recipe for banana bread. Which law would best protect this recipe?

1. Copyright

2. Patent

3. Trade secret

4. Trademark

The correct answer is: Trade secret

The most suitable law to protect George's secret recipe for banana bread is the concept of trade secret. Trade secrets are defined as practices, designs, formulas, processes, or any other information that provide a business advantage over competitors who do not know or use it. Since a recipe is often not publicly disclosed and is kept confidential, it falls under the category of a trade secret. For a trade secret to be protected, reasonable measures must be taken to keep it confidential, such as limiting access to the information and using non-disclosure agreements with employees and partners. Unlike patents, which require a public disclosure of the invention and have a limited term, trade secrets can last indefinitely as long as the secret is maintained. While copyright protects original creative works like written recipes, it does not protect the functional aspects or methods of the recipe itself. A patent could theoretically protect a unique recipe if it involved a novel process or was considered an invention, but this requires public disclosure and is not suitable for someone wanting to keep their recipe secret. Lastly, trademarks are used to protect brand names and logos that distinguish goods or services in the marketplace, which is irrelevant to the protection of the recipe itself. Therefore, utilizing trade secret law is the most effective means for George to