How can a company protect trade secrets?

Contents:

1. How a company can protect trade secrets: an introduction
2. What does a trade secret include and what information cannot be included in it?
3. What documents should be drawn up to introduce a trade secret regime?
4. Who does the TS scan apply to?

How a company can protect trade secrets: an introduction

Since the second half of the 20th century, the expression "Who owns information, he owns the world" has become the motto of our time. This phrase of the famous banker Nathan Rothschild perfectly characterizes the importance of accurate information about something. In a business context, this refers to the information that a company uses to effectively solve problems and achieve goals. This category includes information related to production technologies, marketing process management, financial and other resources. Collectively, these data can be designated by the term "trade secret", which is of considerable value for any company.

Information is an intangible asset. This complicates his legal protection. According to the current legislation, trade secrets are subject to intellectual property rights. At the same time, it cannot be protected with a patent, that is, the business entity will have to independently resolve the issue of protecting data from leakage.

What does a trade secret include and what information cannot be included in it? 

Commercial information can be called information that in one way or another affects production processes:

1. Production methods, organization of the enterprise, current and future projects.
2. Conditions for scientific and industrial experiments, technological processes.
3. Drawings, diagram, other types of design documentation.
4. Information about the costs of production.
5. Business development plans.
6. Marketing and other research.
7. Information about suppliers and customers, negotiations conducted by the company.

With regard to the above information, the trade secret regime is in effect, that is, the information cannot be disclosed to unauthorized persons, as this will entail negative consequences for the owner.

There is a certain list of data that are related to commercial activities, but cannot remain confidential. This category includes the constituent documents of the company, financial statements that must be submitted to the regulatory authorities, data on the number of employees and salaries, vacancies. Information that directly or indirectly violates the law cannot be a commercial secret. For example, this is non-compliance with the requirements of labor legislation, exceeding the norms of emissions into the atmosphere, the manufacture and sale of low-quality products.

What documents should be drawn up to introduce a trade secret regime?

Leakage of confidential company data is a serious problem for businesses around the world. Not only scammers and hackers steal information. Often, employees themselves, intentionally or accidentally, give out company secrets. To avoid such situations, the business owner should take the following steps:

• To designate and convey to the team what constitutes a commercial secret regime, what information is confidential. In the Regulation on Commercial Secrets, it is necessary to prescribe the basic provisions on the protection of commercial information: who owns the company's resources, what rights the personnel have in access to such information, what responsibility is provided for its disclosure. This will allow employees to avoid situations where important information is leaked inadvertently.
• It is worth including in the employment contract a clause according to which the employer has the right to control the actions of the employee while he is at the workplace during working hours. This will allow you to avoid situations when a person "merges" data from a work computer using corporate mail. Also, a paragraph can be included in the employment contract, according to which the employee undertakes an obligation not to disclose confidential information and is ready to bear responsibility for certain types of violations.  
• The company's management should develop a special regulation that includes the procedure and principles for the protection of commercial information, the procedure for its transfer to personnel, customers and representatives of government agencies, responsibility for the misuse of confidential data. Each employee must familiarize himself with this document against signature. You can create a commission that will include the most responsible and qualified employees. Their task is to conduct explanatory work, to monitor compliance with the new organizational order.

Who is covered by the TS scan?

Leakage of confidential information can occur not only through the fault of employees, but also of counterparties. For security reasons, the company's management should conclude an additional agreement or include a clause on non-disclosure of confidential information in the main agreement. The document must contain a list of information not subject to disclosure, and sanctions for violation of the above paragraph.

To protect trade secrets, it is necessary to prepare a list of documents in the company, if you need help in developing and introducing a confidential information regime, the A4 Law Firm team of lawyers is ready to help with this.