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Trade Secrets
Key points
●

Trade secrets can be protected even if there is no protective contract provision

●

Not all non-public information can be protected as confidential information

●

An employee can use his know how and general skills freely when he leaves employment

●

Most confidential information is now stored in electronic form; electronic data leaves a lasting record

●

The most common remedy to protect trade secrets is an injunction

●

A springboard injunction may be available to prevent use of confidential information

●

Stealing confidential information can be a criminal offence in some countries

●

An information management process will support enforcement

●

Protection of confidential information is enhanced by maintaining proper systems and procedures

Tips
●

Prevention is far better than cure; implement and maintain an information management protocol

●

Map data entry points, and manage how confidential information is received, stored, accessed,
disclosed, and destroyed

●

Sensibly identify what is, and what is not, confidential information

●

Sensibly identify who has access to confidential information, and implement measures to restrict
access by others

●

Use available IT methods to monitor use of thumb drives, or use of personal devices or IT in
connection with confidential information

●

Ensure the employer has the right to monitor use of IT systems on a fair and reasonable basis

●

Remind employees regularly of duties relating to confidential information, and always when an
employee resigns

●

Gather proof and evidence promptly (and ideally while the employee is still employed) before making
demands arising from an alleged breach

●

Consider notifying a new employer of confidential information that an employee may have taken

Traps
●

Having policies that are not maintained or enforced

●

Only considering protection of confidential information after a breach

●

Confusing know how with confidential information

●

Not acting quickly to forensically gather IT evidence of breach

●

Not acting quickly while the employee remains employed

twobirds.com

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Tips on Trade Secrets

  • 1. Trade Secrets Key points ● Trade secrets can be protected even if there is no protective contract provision ● Not all non-public information can be protected as confidential information ● An employee can use his know how and general skills freely when he leaves employment ● Most confidential information is now stored in electronic form; electronic data leaves a lasting record ● The most common remedy to protect trade secrets is an injunction ● A springboard injunction may be available to prevent use of confidential information ● Stealing confidential information can be a criminal offence in some countries ● An information management process will support enforcement ● Protection of confidential information is enhanced by maintaining proper systems and procedures Tips ● Prevention is far better than cure; implement and maintain an information management protocol ● Map data entry points, and manage how confidential information is received, stored, accessed, disclosed, and destroyed ● Sensibly identify what is, and what is not, confidential information ● Sensibly identify who has access to confidential information, and implement measures to restrict access by others ● Use available IT methods to monitor use of thumb drives, or use of personal devices or IT in connection with confidential information ● Ensure the employer has the right to monitor use of IT systems on a fair and reasonable basis ● Remind employees regularly of duties relating to confidential information, and always when an employee resigns ● Gather proof and evidence promptly (and ideally while the employee is still employed) before making demands arising from an alleged breach ● Consider notifying a new employer of confidential information that an employee may have taken Traps ● Having policies that are not maintained or enforced ● Only considering protection of confidential information after a breach ● Confusing know how with confidential information ● Not acting quickly to forensically gather IT evidence of breach ● Not acting quickly while the employee remains employed twobirds.com