Some information is too good to share. Information that adds an economic advantage to your business and that you have taken reasonable steps to keep confidential can be protected as trade secrets. Contact us about how you can protect your proprietary business information.
Most states have adopted the Uniform Trade Secret Act which defines the type of information eligible for the trade secret protection.
It sets out a private cause of action for trade secret misappropriation, and it provides remedies for misappropriation, including injunctions, damages and, in certain cases, attorneys’ fees.
1. It is secret
2. It confers a competitive advantage on its owner
3. It is subject to reasonable efforts to maintain its secrecy
Trade secrets can take many forms. They can be formulas, plans, designs, patterns, supplier lists, customer lists, financial data, personal information, physical devices, processes, and computer software.
A business that has trade secrets must put up all the necessary walls for the trade secret to be protected. Simply calling the information a trade secret does not make it so. Your business must take the ncessary precautions to protect your company’s trade secrets. In fact, some companies go through some extreme lengths to protect their trade secrets.
For example, the formula for Coca-Cola (perhaps the world’s most famous trade secret) is kept locked in a bank vault that can be opened only by a resolution of the Coca-Cola Company’s board of directors. Only two Coca-Cola employees ever know the formula at the same time; their identities are never disclosed to the public and they are not allowed to fly on the same airplane.
Coca-Cola is an extreme example, but in most cases you must take sensible precautions to protect your company’s trade secrets. The most common way is through nondisclosure agreement (NDAs). However, there are other procedures and documents that can be put into place to make sure your trade secrets are protected. Contact us today to get your free trade secret audit.