Trade secrets are one of the most important types of intellectual property a business can have. Many companies, both big and small, can attribute their success to a well-kept trade secret. As such, protecting trade secrets from theft or leaks is crucial to your company’s continued success and profitability.
Unlike other types of intellectual property, though, you can’t register a trade secret to officially protect it. Below are four tips to help you protect the confidentiality of your trade secrets.
1. Ensure physical security
Establish a solid physical security plan. It’s important to control physical access to the files documenting your trade secret and secure the physical location. Some ways you can ensure physical security are:
- Restricting access only to higher-level employees
- Locking restricted areas or file storage
- Maintaining strict visitor protocol and facility access logs
2. Reinforce cyber security
Poor cyber security leaves you and your company vulnerable to cyber espionage. Implement strict electronic access restrictions to your top secret files and record detailed logs of computer events or access instances. Other cyber security tips include:
- Require two-factor or multi-factor authentication
- Restrict access to unauthorized websites
- Consider securing trade secrets in servers without internet access
- Prepare a cyber attack plan
3. Require trade secret protection in employee training
Your employees, from rank and file to executives, should know how to handle sensitive information in various situations. It’s also a good idea to provide training to third-party vendors. Everyone working in or for your company should know what is considered confidential, how to avoid phishing attacks, how to identify possible corporate espionage and more.
4. Draft airtight non-disclosure agreements
Non-disclosure agreements will help safeguard your trade secrets when the time comes for employees or executives to leave your company. Trade secrets do not have an end date like a patent registration has. It is important to word your non-disclosure agreements to reflect this and ensure continued secrecy of the information.
Seek legal advice first
If you suspect a trade secret leak or theft, it is best to consult an experienced attorney and follow their legal guidance on how to best proceed. Federal and state laws will help enforce your rights to protect your intellectual property as long as you took reasonable measures to protect your trade secret’s confidentiality.