Know-How

A body of confidential knowledge regarding the operation of a process or the manufacture of a product.

Even where one or more patents (or patent applications) have been published providing details about inventions involved in the process or product, a significant gap typically remains between the knowledge made publicly available by the publication of the patents (or patent applications) and the commercially viable or optimal implementation of those inventions in the operation of the process or the manufacture of the product. This gap is filled by know-how, which encompasses both explicit knowledge (such as confidential data, manuals, and formulas) and tacit knowledge (unwritten skills and operational experience).

This know-how is generally considered to have significant value in its own right and is commonly protected through the use of trade secrets, non-disclosure agreements (NDAs), and employment agreements. When licensing a technology, it is common for an agreement to include a transfer of know-how associated with the technology in addition to a licence to any patents covering the technology.