[BreachExchange] Five Strategies for Protecting Trade Secrets

[Audrey McNeil]

https://www.natlawreview.com/article/five-strategies-
protecting-trade-secrets

In a post-Defend Trade Secrets Act world, employers have a host of civil
remedies available to them for the misappropriation of trade secrets under
both state and federal law. To obtain relief, an employer must establish
that the information it claims is subject to trade secret protection is, in
fact, protected as confidential and secret. Below we outline five actions
an employer might consider to demonstrate it has taken the necessary
measures to protect the secrecy of its confidential information.

1. Written agreements with employees who have access to trade secrets.
These agreements may contain confidentiality, non-disclosure,
non-solicitation, or non-competition provisions. To be effective, it is
critical that such agreements define clearly what constitutes “confidential
information,” and include a clause affirmatively requiring the return of
such “confidential information” upon the termination or resignation of the
employee.
2. Written policies governing employee conduct. Employers should set forth
clear rules for marking and maintaining confidential information, such as
written instructions related to copying and sharing of confidential
information. Employers can also include restrictions on the sharing or
disclosure of confidential information in employee handbooks or other
policies that are shared with all employees.
3. Limiting employee access to trade secrets. This may include limiting
physical access to documents stored in hard copy, by, for example, limiting
locations where the confidential information is maintained, locking those
locations, and tracking individuals accessing the information. Employers
should also take care to protect electronically-stored information by, for
example, employing password protection on documents and databases
containing confidential information, restricting access to such documents
on external devices, and implementing security monitoring measures.
4. Limiting outsiders’ access. Similarly, employers should limit outsider
access to areas housing confidential physical documents and devices with
access to electronically stored information. Depending on the information,
this may include the use of security guards or cameras, perimeter fencing,
visitor badges with log in and out procedures, and security card access to
certain areas.
5. Controls on public dissemination. Employers may consider designating an
employee to review and approve publicly disseminated information, including
publications, presentations, promotional materials, and website content to
ensure trade secret information is not inadvertently disclosed. Employers
should also carefully evaluate the scope of information shared in meetings
with potential partners or customers, and may further consider requiring
meeting participants to enter into non-disclosure agreements if
confidential information must necessarily be shared.

Employers should remember that any security measures should be regularly
monitored, audited, and updated to maintain their effectiveness. Efforts to
maintain these procedures may pay dividends should the employer have to
pursue a former employee for trade secret theft.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.riskbasedsecurity.com/pipermail/breachexchange/attachments/20171205/165c82bc/attachment.html>