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Ways to Protect Your Trade Secrets

You started your business based on your own knowledge and creativity. You worked hard to establish your brand

and create unique products. The recipe behind your perfect beverage or the secret ingredient that makes your rubber products so durable is part of your trade secret — and you need to protect that secret for the future success of your business. With every employee or partnership you take on, your trade secrets become more at risk.

But, you can eliminate that risk by taking the proper legal steps to protect your trade secrets. Certain legal agreements drafted by your trade secret attorney can prevent partners and employees from leaving and setting up shop using your recipe or design.

The Non-DisclosureA non-disclosure agreement can protect your company’s information. This agreement prohibits an individual from sharing your trade secrets without your direct permission. When creating this type of agreement, you will want to make sure you clearly define what is considered “confidential”. Companies use non-disclosure agreements to protect formulas and other information that is considered a trade secret.

The Non-CompeteIn addition to having employees and partners sign non-disclosure agreements, you should also have them sign a non-compete. This prevents an employee from not only using your information, but from starting a competing business within a specific timeframe or geographical location.

Non-competes must meet certain criteria, including being supported with consideration, protecting an actual business interest, and you must bind the employee within a reasonable scope — meaning you cannot bind them from starting a business for 100 years.

If you have trade secrets, you should work to protect them. A trade secret attorney can create non-compete clauses and non-disclosure agreements to keep employees and partners from using your business’s confidential information against you. While there are templates available online to create your own non-disclosure and non-compete, it is best to hire an attorney in your area that specializes in trade secrets. State laws do vary and you need an attorney that can create an agreement that protects your business and complies with your state’s requirements.