San Francisco Business Lawyer Warns, “Don’t Let Your Trade Secrets Slip Away”

Trade secret law protects the advantage that information gives your business. In the broadest sense, a trade secret is any information you have which gives you a competitive advantage, and which is kept secret. This covers everything from inventions to your customer list. The key factor is that some of that value comes from the fact that you have the information and others do not.

The courts have identified several factors which will be considered in determining what is a trade secret: How much of the information is known outside of your business? How much is known by employees and others in your business? What measures have you taken to protect the information? How valuable is it to you or your competitors? How much was invested in developing the information? And how easily could others get this information legally (without stealing it from you)?

Once you have identified your trade secrets, how can you protect them?

First, keep them secret. It may sound obvious, but it’s not. Don’t tell everyone your secrets, especially your employees and customers.

Usually, trade secrets are stolen by people you know, like employees. Here, one of your best sources of protection is a written trade secret agreement. For most employees, a trade secret agreement alerts them to the fact that your information is valuable and you intend to protect it. It also tells them that there will be a high price to pay if they divulge the information.

If you have employees involved in design and planning, a more complex trade secret agreement is advisable, one which also serves to set forth the intellectual property rights of employer and employee.

Finally, if you have visitors to your business facility, you should consider having them sign a short trade secret agreement. This will serve to put them on notice that they cannot disclose any information they may randomly come across.

If you need a trade secret agreement, call our office for assistance.