Recognize what qualifies as confidential information
What Are Trade Secrets?
A trade secret is confidential information that provides a business with a competitive advantage over its competitors. Trade secrets can include formulas, processes, designs, techniques, and other types of confidential information that are not generally known to the public or competitors.
Trade secrets are often a critical part of a company’s intellectual property portfolio and can be protected through various legal means, including non-disclosure agreements, employment contracts, and other types of contracts.
Unlike patents, trade secrets do not need to be registered with the government, and they can be protected indefinitely as long as the information remains confidential. However, trade secret protection can be lost if the information is disclosed or becomes public knowledge.
Examples of trade secrets include the formula for Coca-Cola, the recipe for KFC’s fried chicken, and the algorithms used by Google’s search engine. Companies may also have trade secrets related to manufacturing processes, customer lists, and marketing strategies, among other things.
Steps to Protect Your Trade Secrets
How to Protect Your Trade Secret
- Identify Your Trade Secrets: The first step to protecting your trade secret is to identify what information qualifies as a trade secret. This could include formulas, processes, designs, techniques, customer lists, or other confidential information that gives your business a competitive advantage.
- Limit Access: Limit access to your trade secret information to only those who need to know it. This can be done through non-disclosure agreements, employment contracts, and other legal agreements.
- Mark Confidential: Clearly mark any documents or materials that contain trade secret information as confidential or proprietary.
- Secure Storage: Store your trade secret information in a secure location, such as a locked cabinet or password-protected digital file.
- Use Passwords and Encryption: Protect digital files and information with passwords and encryption.
- Monitor Access: Track who has access to your trade secret information and keep records of who has viewed it.
- Train Employees: Train employees on the importance of trade secret protection and the measures they can take to safeguard confidential information.
- Enforce Agreements: Ensure that non-disclosure agreements and other contracts protecting your trade secrets are enforced.