Your business is built on many things, and one of them is likely your own proprietary information. This information is necessary to keep your business running and to properly compete with other companies. It is essential to take steps to proactively protect the company’s confidential information. There are several ways to keep your company safe from unauthorized exposure of trade secrets. A knowledgeable attorney will help you manage and protect your company’s trade secrets.
What are Trade Secrets?
Every company has some information it deems confidential. This type of data is also sometimes called trade secrets. It is important for a company to define its trade secrets so it can take the proper steps to ensure their security. Trade secrets are defined under the Uniform Trade Secrets Act as:
“Information, including a formula, pattern, compilation, program, device, method, technique or process that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.”
Protect Trade Secrets With Written Agreements
One of the best ways to protect your trade secrets is with the use of agreements. There are two main types of agreements that are useful. Non-disclosure agreements (NDAs) are agreements you make with employees, contractors, and vendors. NDAs prohibit someone from disclosing confidential information. Employee contracts are helpful when you include a confidentiality clause. This prevents people from taking secret information with them and may also keep them from being able to seek employment with a competitor for a period of time after they leave your company. Also, when an employee leaves the company, ensure that you stress their legal obligation to protect trade secrets.
Secure Access to Confidential Information
First and foremost, treat your confidential information with respect. Do not disclose trade secrets except to authorized personnel. If possible, secure access to the information through an actual safe. Take steps to make sure that all employees lock their file cabinets and put security access in place so only authorized employees may enter the facility or certain areas of the building. Use strong passwords for networks and employee computers.
Include digital security measures as part of your security program. You need to protect computers and networks from unauthorized access. Keep in mind that your competitors or others may try to obtain access to your trade secrets, which may be quite valuable. A dedicated person or team is often necessary to keep your business up-to-date with the current technology and security measures.
Implement Security Measures
In order to protect company secrets, you will need to put some security measures in place. Make sure you mark all secret or confidential materials with a stamp indicating the status. Put policies in place to address your specific type of trade secrets. This includes monitoring and enforcing policies to ensure compliance. Review your security measures and update them frequently. Train employees about your confidentiality policies and put disciplinary penalties in place for those who do not follow the policies.
Protection of your company’s trade secrets is a critical part of your business. Keep your company safe by implementing strategies to prevent the disclosure of confidential information. If your company suffers a breach, you can take legal action when necessary. To learn more, contact our experienced legal team at Moen Sheehan Meyer, Ltd. at (608) 784-8310 or online.