How To Protect Your Trade Secrets

The leading companies don’t just optimize their technology, they embed policies within the company to protect their trade secrets at every touchpoint. In this article, let’s learn the steps employers can take to protect confidential, proprietary and trade secret information.

Require new hires, current employees and third-parties to enter into a non-disclosure agreement.

‍This simple and common agreement is the first step to protecting a company’s trade secrets. Work with your attorney in drafting this agreement, as it should clearly and broadly define what the employer considers confidential and how the confidential information can be used. Using non-disclosure agreements will also bolster the argument that the company's business information qualifies as a trade secret, because the employer can establish that it has taken extra precautions to protect its confidentiality.

Use physical and electronic security measures.

Take protection measures, such as storing trade secret information in password protected files, placing hard copies under lock and labeling all proprietary information as “confidential.”

Limit employee access.

Only employees who need the proprietary information to perform their jobs should be granted access.

Adopt an internal company policy.

Implement a policy that covers the company's trade secret, confidential, and proprietary information. This policy should inform employees about what qualifies as trade secret information and how to handle the company's information. It can also notify employees that computers are company property and the employer may investigate suspected breaches of confidentiality. Provide this policy to all employees and require they acknowledge receipt in writing.

Take action on violations of trade secret obligations.

‍If the company suspects that someone is violating their contractual trade secret obligations, they can send a cease-and-desist letter.