9/26/2023 0 Comments Protect trade secrets![]() Changing login credentials upon employee dismissal.Having employees with access sign confidentiality or non-compete agreements.Physically locking file cabinets containing trade secret information.Keeping sensitive information in password-protected digital files.That said, some examples of measures that courts typically consider sufficiently protective can include: Some approaches are more effective than others, and courts may not consider certain efforts sufficient to provide adequate protection. There are several ways businesses can protect trade secrets. However, the phrase “reasonable measures” can seem vague and subjective, creating confusion and vulnerabilities in a business’s intellectual property. If someone steals your trade secrets and a court finds that you did not take reasonable steps to protect them, you may lose your case, so it's important to take your secrets seriously and take a proactive approach to keeping them safe.Protecting trade secrets requires parties to take reasonable measures to keep the information in question private. Consistently following your own policies and procedures.Undertaking disciplinary action with employees who have violated your policies and procedures.Providing employees with ongoing security training.Avoiding disclosure of protectable secrets to people in other countries-not every country has the same trade secret protections.Ensuring the physical security of buildings and areas where confidential activities are happening, such as manufacturing plants and labs.Executing confidentiality and nondisclosure agreements with employees and vendors.Securing computers and networks via industry-leading standards, including encryption, strong passwords, or biometric locks.Monitoring where confidential information is stored, including electronic items such as computer hard drives, discs, and thumb drives.Assessing vulnerabilities and risks, both internally and externally.Limiting access to related materials and requiring those materials to be checked in and checked out.Labeling materials that contain protectable trade secrets.Identifying secrets that need protection.You can help safeguard the continued success of your business by: Protecting trade secretsĪside from being able to sue for damages in federal court and to seek seizures of stolen information, there are other ways you can proactively protect your business and avoid the significant losses that are inherent in this kind of theft. Now that the DTSA has federalized trade secret protections, businesses have more certainty regarding litigating violations of these rights. While nearly all states enacted laws using the UTSA model, this process historically led to significant differences in how these cases were decided. Prior to the enactment of the DTSA, these cases were tried in state courts. If you are a victim of trade secret misappropriation, the Defend Trade Secrets Act of 2016 (DTSA) gives you the right to bring a private civil lawsuit under the Economic Espionage Act. In the U.S., the UTSA and the Economic Espionage Act of 1996 forbid their misappropriation for commercial use. In highly competitive business industries, employees may be tempted to steal these secrets to obtain a more lucrative position or sell those secrets to the highest bidder. More specific examples include the design of a smartphone or the recipe for a world-famous soft drink. The Uniform Trade Secrets Act (UTSA) defines a trade secret as "information that has independent economic value by not being generally known and can reasonably be maintained a secret." This can be any piece of confidential information that has the potential to provide a competitive edge for your business, which may be related to: From employee agreements to onsite security, here are some of the best ways your company can protect its most valuable business resources. No matter what business you're in, protecting your trade secrets should be a priority.
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