Protect Trade Secrets
Trade knowledge, insider expertise, and business insights are often kept secret and not shared with outsiders. Any type of private knowledge such as compilations, formulas, methods, devices and even ideas are protected.
How does one come to define a trade secret? According to California state law, trade secrets are information that:
-Has independent economic value related to its secrecy
-Is reasonably protected because of this secrecy
-Is not known to the public, people, or industry that can monetize it
Some examples of this type of information are:
In order to protect trade secrets, businesses must put practices in place. Confidentiality agreements for employees, such as a non-disclosure agreement (NDA), are required by most companies in order to place warnings on trade secrets. Informing and educating employees on secret information is paramount to making sure they (or third parties) do not violate NDAs. Businesses MUST protect their information so neither the public nor competitors can view it and essentially steal it. Prioritizing confidentiality agreements, security, and warning verbiage helps keep matters in place.