| Keeping Valuable Business Information "Secret"
There are a number of simple steps that should be considered in order to successfully maintain trade secret protection for your company's information. We discuss with our clients the need and extent to which these and other steps should be taken to preserve their valuable business information:
- Initial interviews for all new employees to discuss the existence of the company's trade secrets, to explain the importance of maintaining the confidences of the company, and to sign confidentiality agreements before any trade secrets are disclosed to the employee.
- Well-drafted and up-to-date confidentiality agreements to cover all trade secret information and non-solicitation provisions as necessary. In some cases, agreements should be modified and re-executed upon promotion to managerial positions.
- Non-competition agreements for management level employees and to preserve trade secrets. These agreements are generally scrutinized by courts called upon to enforce them. The laws of most states usually require that such agreements contain reasonable durational and geographic limitations, among other things.
- Password protection for information stored on computers and networks.
- Specific policies and practices on marking trade secret documents "confidential," and limiting distribution of such information on a specified "need-to-know" basis.
- Maintaining distribution lists or access logs that track to whom the trade secret information has been disclosed.
- Maintaining appropriate on-site security and/or I.D. badges to prevent un-escorted visitors at your company.
- Exit interviews with departing employees to remind them of confidential obligations and obtain information on potential competitive activities.
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