Legal Definitions - know-how

Definition: Know-how refers to non-public information that individuals or companies acquire about how to use something in a business. It can be knowledge that makes using something easier or more beneficial. This knowledge can be about creating a product or managing a business.

Know-how can be legally protected if it meets the requirements for trade secret protection. This means that the creator of the know-how has intangible property rights over the trade secrets and can take legal action if someone misappropriates the trade secrets. However, not all know-how qualifies for trade secret protection.

Companies often protect their know-how through contracts with their business partners and employees. These contracts require the other party to never disclose the know-how, giving the creator of the know-how contractual remedies against any disclosure.

Examples:

• A company has developed a new way to manufacture a product that reduces costs and increases efficiency. This knowledge is their know-how.
• A restaurant has a secret recipe for a sauce that is popular with customers. This recipe is their know-how.
• A software company has developed a unique algorithm that improves the performance of their product. This algorithm is their know-how.

These examples illustrate how know-how can be valuable to a business and can give them a competitive advantage. Protecting this knowledge is important to maintain that advantage.