What business owners should know about trade secrets

| Apr 28, 2021 | intellectual property

A business is often as successful as the elements that make it unique. There are many entities that fail after opening because they are unable to distinguish themselves from their competitors and do not produce distinctive products or services. When a California business wants to stand apart, it must develop and protect trade secrets that make it different and better than others in its industry.

A trade secret is an asset that makes an entity’s product or service distinguishable, like a secret recipe or a unique production process. Without it, a business may not have any way to show that it is different from others. This post will outline some of the important aspects of trade secret protection that business owners should know, but all trade secret questions and concerns should be directly discussed with business law attorneys.

Ways to protect trade secrets

Trade secrets often must be protected form internal and external interests. Competitor businesses may seek to steal trade secrets to eliminate competitive advantages, and workers within a company may try to sell trade secrets for their own gains. Entities can protect their trade secrets by implementing many strategies to safeguard them, including but not limited to:

  • Identifying what business information qualifies as a trade secret;
  • Limiting access to trade secrets to few employees;
  • Prohibiting access to trade secrets by anyone outside of the entity;
  • Using electronic and physical security measures to prevent access to trade secrets; and
  • Training employees on how to appropriately handle trade secrets.

The security of a trade secret can be vital to the success of a business. Investment in tools to keep them safe can protect business interests and promote security within the organization.

Addressing breaches of trade secrets

It is an unfortunate truth that some trade secrets are discovered and shared with parties who have no right to the information. When this happens, businesses can suffer losses and other setbacks that can have lasting repercussions on their long-term viability. The breach of a trade secret is a serious legal matter, and it is important that a business addresses it quickly to avoid further losses. Consultation with knowledgeable business and intellectual property lawyers can help entities protect themselves from trade secret divulsions and thefts.