What Are the Best Tips for Trade Secret Protection?

Trade secret protection begins with a well-developed policy that displays a company's commitment to secrecy. Documents containing trade secrets should be secured and identified as confidential. Electronic files should have higher degrees of security than other data. Employees should also be required to justify unnecessarily accessing sensitive information, and carelessness with information should not be tolerated. It is also best to stress trade secret protection by having employees sign confidentiality agreements before they are hired and when they leave the company.

Owners of trade secrets generally cannot take action against violations if they have not demonstrated sufficient measures of secrecy themselves. This means that trade secret protection should begin with a well-developed policy on maintaining secrecy. That policy should go beyond the normal measures taken to keep information private. For example, it may be common practice to lock file cabinets containing business documents. In this case, even greater efforts should be taken to protect trade secrets.

Physical documents containing trade secrets should always be stored, transported, and exchanged in file or storage supplies that bear words expressing the sensitivity of the contents. This may include wording such as “confidential,” “highly sensitive,” or “only to be accessed by ... .” Those documents should be made accessible only to people who need that information. Even when individuals are granted the ability to access trade secrets, an explanation should be required if they do so without apparently good reasons.

Electronic files containing trade secrets should be subject to a higher degree of security than other electronic files. It is best to store this type of information in an encrypted form. There should also be a strict policy of prohibiting the transmission of this material over unsecured severs, if electronic transmission is permitted at all. Online file storage and back-up services should not be used for this type of information.

The importance of confidentially should be stressed to all employees through live communication. This includes those who do not have access to the trade secrets. All employees should also be required to sign confidentiality agreements that outline the company's policy in detail.

Violations of trade secret protection should never be tolerated. Carelessness should also be dealt with promptly and strictly. It is imperative for everyone to understand the seriousness of the matter and to believe that violating the company policy intentionally or unintentionally will result in severe consequences.

For the sake of trade secret protection, exit interviews should be a matter of procedure. Any materials that the departing employee has that belong to the company should be requested on this occasion, if not before. Access cards, passwords, and any other means of obtaining company information should be deactivated. It is also wise to have individuals sign another document obligating them to maintain confidentiality upon their departure.