At the most basic level, a trade secret is simply information and knowledge. More specifically, it is often in the form of inventions, know-how, and show-how information that gives you a competitive advantage. Anything that takes time, money, or effort to develop and that you don’t want your competitors to know about.
When licensing a trade secret, the key is making sure your information remains confidential. The licensing agreement details specifically which information is confidential (and which isn’t), limits what the licensee may use it for, and specifies how long it must stay secret (usually two to five years).