UK Photonics companies risk falling behind by relying on trade secrets over patents

However, a concerning trend is emerging among UK photonics companies: a preference for trade secrets over patenting their innovations. While trade secrets may offer short-term advantages, over-reliance on them could expose companies to long-term risks and reduce competitiveness both domestically and on the global stage.

 

Trade secrets vs Patents

 

Trade secrets, by definition, may capture any information that provides a business advantage over competitors who do not know or use it. They require no registration and can theoretically last indefinitely, provided secrecy is maintained. For resource constrained startups or SMEs, this can seem attractive—avoiding costly patent application processes and disclosing nothing to competitors.

 

However, this approach comes with significant vulnerabilities. Unlike patents, trade secrets offer no legal protection if another company independently develops the same innovation or reverse-engineers the technology. In a sector like photonics, where scientific research is global, the risk of unintentional disclosure or duplication is high. Once a secret is out, the company loses all exclusive rights to the technology, with little to no legal recourse.

Trade secrets offer no public recognition of innovation, which can be critical for securing investment, forging partnerships, or participating in government-backed initiatives. Investors and collaborators often look to patent portfolios as a tangible indicator of a firm’s innovative capacity and competitive advantage. Without a clear IP strategy anchored in patenting, UK photonics companies may struggle to attract funding and scale effectively.

 

Another strategic risk is in international markets. Patents provide enforceable rights across jurisdictions, offering protection against infringement and unauthorised use in key global markets. For UK photonics companies aiming to export or license their technologies, patents are often essential tools. In contrast, trade secrets do not extend well beyond national borders and are especially vulnerable in countries with weak IP enforcement frameworks.

 

The UK government has identified photonics as a key technology area for economic growth and technological leadership. Yet, without a robust approach to patenting, domestic firms may cede ground to better-prepared international competitors who actively protect and leverage their IP assets. Furthermore, in the event of mergers, acquisitions, or even staff turnover, the fragility of trade secrets becomes evident—departing employees may inadvertently or deliberately carry confidential knowledge to competitors.

 

Adopting a balanced IP strategy

 

To mitigate these risks, UK photonics firms should adopt a balanced IP strategy that includes selective but strategic patent filings, especially for core innovations. Government bodies and industry associations can play a role by providing education, financial incentives, and support services to make patenting more accessible to SMEs.

 

“UK photonics companies should adopt a balanced IP strategy that includes selective but strategic patent filings”

 

While trade secrets have their place in the IP toolkit, an over-reliance on them at the expense of patenting could undermine the long-term innovation capacity and global competitiveness of UK photonics companies. A strategic pivot toward securing patents may be essential to safeguarding the future of this high-potential sector.

 

For more information please contact Olivier Martinez.

 

This briefing is for general information purposes only and should not be used as a substitute for legal advice relating to your particular circumstances. We can discuss specific issues and facts on an individual basis. Please note that the law may have changed since the day this was first published in June 2025.