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Trade Secrets Protection in the Digital Age
Trade Secrets Protection in the Digital Age
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Trade Secrets Protection in the Digital Age
- 1. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com Trade Secrets Protection in the Digital Age ASWATHI. R
- 2. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com What is trade secret? Trade secrets are intellectual property (IP) rights on confidential information which may be sold or licensed. In general, to qualify as a trade secret, the information must be: • commercially valuable because it is secret, • be known only to a limited group of persons and not publicly available(confidential), and • be subject to reasonable steps taken by the rightful holder of the information to keep it secret, including the use of confidentiality agreements for business partners and employees. The unauthorized acquisition, use or disclosure of such secret information in a manner contrary to honest commercial practices by others is regarded as an unfair practice and a violation of the trade secret protection
- 3. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com Trade secret in digital age: • Trade secrets include formulas, algorithms, manufacturing processes, business strategies, and customer lists—essentially any confidential business information that provides economic value • As businesses increasingly rely on digital technologies for operations, data storage, and communication, protecting trade secrets has become more challenging than ever. • Increased risk of cyberattacks, insider threats, and unintentional data leaks, making trade secret protection a critical priority.
- 4. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com CHALLENGES 1. Cybersecurity Threats: • Hackers and cybercriminals target valuable corporate data, including trade secrets. • Cyberattacks such as ransomware, phishing, and data breaches can expose confidential information, 2. Insider Threats • Employees, contractors, and business partners often have access to sensitive company data. • Chances of displeased employees or negligent insiders may leak trade secrets, either intentionally or accidentally, through email, cloud storage, or external devices
- 5. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com 3. Remote Work and Cloud Computing • The shift to remote work and cloud-based storage has increased data accessibility but also heightened security vulnerabilities. • Employees WFH may use unsecured networks, making sensitive company information more susceptible to hacking or unintentional leaks. 4. Third-Party Risks • Many businesses collaborate with vendors, suppliers, and service providers who have access to trade secrets. • Without proper agreements and security measures, third parties may inadvertently or intentionally expose confidential
- 6. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com STRATEGIES FOR PROTECTING TRADE SECRETS Companies must adopt a multi-layered approach combining legal, technological, and operational measures. 1. Legal Protections i.Non-Disclosure Agreements (NDAs): Require employees, contractors, and business partners to sign NDAs to prevent unauthorized sharing of confidential information. ii.Non-Compete Agreements: Restrict employees from joining competitors or starting rival businesses using trade secrets. iii. Trade Secret Litigation: Use legal action under laws such as the Defend Trade Secrets Act (DTSA) in the U.S. to pursue misappropriation cases.
- 7. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com 2. Cybersecurity Measures Data Encryption: Encrypt sensitive information to prevent unauthorized access. Access Control: Implement role-based access to limit exposure of trade secrets only to employees who need them. Multi-Factor Authentication (MFA): Require MFA for accessing sensitive systems to reduce unauthorized breaches. Cybersecurity Training: Educate employees about phishing scams, password management, and data protection. 3. Monitoring and Incident Response • Data Loss Prevention (DLP) Tools: Use DLP solutions to detect and prevent unauthorized sharing of confidential information. •.
- 8. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com • Activity Monitoring: Implement real-time monitoring tools to detect suspicious access or downloads of trade secret files. • Incident Response Plan: Develop a plan to address security breaches, including containment, investigation, and legal action 4.Remote Work Security • Secure Virtual Private Networks (VPNs): • Ensure employees use VPNs to access corporate networks securely. • Endpoint Security Solutions: Deploy antivirus software, firewalls, and security patches for remote devices. • Cloud Security Policies: Implement strict access control and encryption for cloud-based storage systems.
- 9. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com 5. Third-Party Risk Management: Vendor Security Assessments: Regularly audit third-party vendors to ensure they comply with security standards. Contractual Safeguards: Include data protection clauses in agreements with suppliers and partners. Confidentiality Agreements: Require external parties to sign legally binding confidentiality agreements.
- 10. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com CASE STUDIES • Google vs. Uber" (Waymo) trade secret theft case • In 2017, Waymo, Google’s self-driving car subsidiary, sued Uber, alleging that a former engineer, Anthony Levandowski, stole 14,000 confidential files before leaving Google to start his own company, Otto, which Uber later acquired. • The stolen trade secrets included critical LiDAR sensor technology • Uber settled with Waymo by paying approximately $245 million in Uber stock, representing 0.34% of its equity, to resolve allegations, where Uber agreed not to use any of Waymo's proprietary technology in its autonomous vehicles
- 11. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com Tesla vs. Former Employees (Autopilot Trade Secret Leak) • Tesla sued several former employees in 2019 for allegedly stealing confidential Autopilot AI data and sharing it with a rival startup, Zoox. • The employees reportedly transferred Tesla’s trade secrets using personal cloud storage. • Zoox later settled, admitting wrongdoing and paying Tesla an undisclosed amount. Cognizant Vs Infosys • Cognizant TriZetto Software Group Inc., a healthcare software provider , alleged that Infosys misappropriated TriZetto’s confidential information and trade secrets through its unauthorized interfaces and its test case repository. (Jan 2025) • A former Infosys executive and current Cognizant CEO, allegedly delayed the launch of Infosys Helix
- 12. CHENNAI C2-A, Industrial Estate, Guindy,Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Office No.337,Regus Eversun Business Center SL Jubilee Third Floor, Plot No.1202 & 1215A, Hyderabad - 500033. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com THANKS