A variety of different non-public information can be a trade secret. Provided that information has economic value because it is secret and others cannot legitimately obtain that information, an organization likely has a vested interest in protecting that trade secret.
Whether a company uses specific suppliers to guarantee product quality while keeping costs low or has a proprietary sauce that customers love, trade secrets give them a competitive advantage. It is, therefore, crucial for organizations to ensure that they properly protect their trade secrets. Leaving them unprotected can result in devastating consequences.
Trade secrets have never been more vulnerable
Thanks to social media and the internet in general, it has never been easier for bitter former employees or competitors to spread trade secrets to the public. Certain information can make a business look bad to its customer base.
Other trade secrets might allow customers to duplicate a product so that they don’t have to continue buying it from a business. People can share information online and have it go viral in a matter of hours. Other times, vendors with access to company information or employees could give or sell trade secrets to another business. Those competitors could then infringe on the company’s trade secrets and diminish their market share.
How can companies protect trade secrets?
There are numerous tactics to help protect trade secrets. Ensuring that no one employee has complete access to certain proprietary information can go a long way toward protecting trade secrets. Restrictive covenants in contracts negotiated with employees, independent contractors, service providers and vendors can also help.
In scenarios where a breach of contract may have occurred or another party inappropriately obtained trade secrets, businesses may need to take prompt action to protect their trade secrets. Litigation can result in the courts issuing an injunction against the use of trade secrets. They could force people to remove inappropriate content from the internet. The courts can also award damages for the economic harm caused by unfair exposure of trade secrets.
Companies need to be proactive about protecting their trade secrets and enforcing their right to maintain them if/when infringement occurs. Pursuing business litigation is often one of the best options available when a worker or other party leaks trade secrets and harms a company’s ability to fairly compete.
