The importance of protecting your company’s trade secrets cannot be overemphasized. Trade secrets are the reason behind your company’s success. The continued success of your business will depend primarily on your ability to keep this information from your competitors’ hands. While there are certain laws that protect intangible assets such as trade secrets, you and your associates must do your part too. Here are a few tips on how to protect your company’s trade secrets.
1. Identify Your Trade Secrets
What are your trade secrets? By definition, a trade secret is any business or technical information that has commercial value, such as a certain formula, program, pattern, method, device, process, or technique. Once you identify this information, you should mark it as confidential. Some companies take an extra step of incorporating additional markings to distinguish the trade secret from other confidential information.
2. Limit Access
Once you have identified your trade secrets, the next step is to restrict access to this information. A general rule of thumb is to disclose it on a “need to know” basis. Only those who need this information to perform their duties should have access to it. You can achieve access control through things such as data segregation, encryption, passwords, and physical security.
3. Educate Employees About Protecting Trade Secrets
Your staff may not understand the significance of trade secrets to your business. It is up to you to educate them about the confidential information. Each employee should sign a nondisclosure agreement during hiring, preventing him/her from sharing any confidential information of the company. You can also incorporate the nondisclosure agreement into a general employment agreement.
4. Maintain Computer Secrecy
Access to trade secrets contained in computer files should be limited to authorized employees. You can accomplish this by giving a password to each employee, and then allowing only certain passwords access to confidential files. You may also want to physically isolate computer discs, tapes, and other storage media and lock them up in the same way as restricted files.
5. Control Public Access to Your Facilities
Trade secrets are not always contained in documents and computer files. Some can be seen by anyone walking through your facilities. For example, the type of machinery you use, manufacturing techniques, and the physical handling of materials and finished products during the manufacturing process.
Others may be readily accessible to anyone walking through your premises via unattended wastebaskets, documents left in plain sight, and overheard conversations. A good way to protect your trade secrets is by having all visitors wear a visitor’s pass and sign in with a guard or receptionist when entering the facilities. A company representative should accompany visitors to sensitive areas of the company and educate them about their obligation to keep restricted information in confidence.
When your trade secrets leak, it could seriously jeopardize the success of your company. Consulting an experienced attorney can help you come up with a solid plan to protect confidential information and keep it out of your competitors’ hands. For further assistance, contact the Amsberry Law Firm today at (210) 354-2244.
Attorney Russell J.G. Amsberry
Attorney Russell J.G. Amsberry founded the Amsberry Law Firm in 1995 with the goal of providing clients with exceptional, focused representation on their issues. His success as a legal advocate has been reflected in the numerous professional honors he has received, such as speaking engagements and inclusion in Scene in SA magazine’s listing of the best lawyers in San Antonio, a Distinguished rating from Martindale-Hubble, and an amazing rating from Avvo. [ Attorney Bio ]
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