From a Legal perspective there are three common ways to protect the IP embedded in your code:
Copyright protection is automatic and forms the basis of most software licenses. However, it only protects against copying and distributing content. It doesn’t cover algorithms, innovations, or inventions. If another company’s code is not similar to yours or they can prove independent development, they’re safe. For managed code, where algorithms can be replicated across different languages, copyright offers minimal protection.
Trade secrets are a strong alternative. They don’t require certification, last indefinitely, and protect concepts and innovations that give your business a competitive edge. This has made trade secret protection the preferred strategy for many development organizations.
But trade secrets have limitations. Some countries, like India, don’t recognize trade secrets. Also, trade secrets only protect information that remains secret. Once public, the protection is lost. Legal definitions of trade secret theft require improper means (e.g., bribery or espionage). Recent laws in the U.S. (DTSA) and EU allow reverse-engineering of legally acquired products, which can expose your source code and algorithms, removing their protection as trade secrets.
