A business is far more than bricks and mortar. Companies also have intellectual property, which is highly valuable. One key example of intellectual property is trade secrets. These include unique formulas, methods, technology, programs and data that give a business a competitive advantage.
To prevent the theft of trade secrets, there are several steps that a business can take. Outlined below are some things to consider.
The Uniform Trade Secrets Act
Florida’s Uniform Trade Secrets Act defines trade secrets as sensitive information from which a company derives economic value. To qualify as a trade secret, other companies must not have access to the information and the business in possession of the information must have taken reasonable steps to protect it.
Some crucial steps in trade secret protection include:
- Labeling documents and manuals as “confidential” or “sensitive”
- Restricting access to the information through passwords and secure devices
- Physically securing areas where the information is stored
- Clearly stating the importance of sensitive information during employee training
Companies can also utilize non-disclosure agreements (NDAs). These are legally binding contracts or clauses within contracts that state employees cannot share sensitive information with unauthorized parties.
Furthermore, if a business owner is concerned about theft of trade secrets when an employee leaves, they should have employees sign non-compete agreements. These are legally enforceable contracts that prevent an employee from working for competitors immediately after leaving. If thefts do occur, litigation may be necessary to recoup business losses.
Protecting your trade secrets and other intellectual property is pivotal to the success of your company. We help businesses legally secure their intellectual property. Feel free to contact us for a consultation.