When building business, many companies come up with valuable resources when they develop specialized information that provides a profit. This information, also known as trade secrets, can be anything that leads to increased revenue against competitors. This can include special formulas, pricing models, business plans, customer demographic data, and the like. One primary issue for many companies is protecting these trade secrets is protecting that information from the competition. The following are some ways for companies to minimize the risk of losing trade secrets and measures that can be taken:

Implement a Confidentiality Agreement

One of the best ways to prevent the sharing or stealing of trade secrets is to have employees sign a confidentially agreement upon hire. The confidentiality agreement should inform the employee that he or she will most likely come into contact or into possession of company trade secrets. The employee should be made aware that any trade secrets or other intellectual property may not be disclosed during the tenure of employment or after the employee leaves the company. In the agreement, it is permissible to include a list of certain items that are considered trade secrets so that it is clear as to what cannot be discussed outside the workplace.

The conditionality agreement should be updated annually to include any new information that is obtained or created by the company. The employees will need to sign it annually as well to provide proof that it was read and understood.

Policies Regarding Electronic Storage

Companies should also have a very clear policy on how all electronic usage is to be utilized in the company. This will include, but is not limited to, internet use, company emails, and electronic storage devices. Some companies may require that any business electronic usage or data transmission not be used outside of the office.

Conduct Exit Interviews

When an employee leaves the company, be sure to conduct an exit interview before he or she leaves the building. This will reaffirm their signing of the confidentiality agreement, and take the time to remind the employee of what they agreed to with regard to trade secrets. Also, let them know of any consequences you have put into place should those secrets be disclosed.

The best way to avoid any issues with employees talking about trade secrets is to protect them from the inside. You do not want to have to deal with the litigation against an employee for discussing those topics. For more information, contact a local business lawyer.