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Trade secrets are valuable assets for businesses of all sizes. They can give you a competitive edge, help you attract and retain customers, and increase your business worth. Some trade secrets are even famously known for being unknown, such as KFC’s blend of herbs and spices, McDonalds’ Big Mac special sauce and Coca Cola’s drink recipe.

However, trade secrets can also be easily lost or stolen and so it is important steps are taken to protect them.

Here are some tips on how to protect your trade secrets:

1. Identify your trade secrets. You need to know what trade secrets your business owns in order to protect them. This could include anything from your product formulas to your marketing strategies.
2. Mark your trade secrets as confidential.  This can be done by using a confidentiality notice on all documents that contain trade secret information.
3. Limit access to your trade secrets. Only people who need to know your trade secrets should have access to them. Implement a system for controlling access to sensitive information.
4. Use non-disclosure agreements (NDAs). NDAs are contracts that legally bind others (whether that be individuals or companies) to keep your trade secrets confidential. You should have all employees, contractors, and business partners sign NDAs before they have access to your trade secrets.
5. Implement physical and technological security measures to protect your trade secrets. This could include things like locking file cabinets, using passwords, encrypting files, shredding used documents and installing security software.
6. Educate your employees about trade secret protection. Your employees are your first line of defence when it comes to protecting your trade secrets. Make sure they understand what trade secrets are and why they’re important. Make sure they do not send emails to the wrong person, or talk about sensitive information in public / on social media.
7. Review your trade secret protection measures regularly. The world of business is constantly changing, so you need to review your trade secret protection measures regularly to make sure they’re still effective. Monitor your competitors for signs of trade theft and revised security measures as well.

By following these tips, you can help protect your trade secrets and keep your business competitive.

If you believe that your trade secrets have been stolen, you should instruct a solicitor immediately who can advise you what to do. You may be able to recover damages and prevent your competitors from using your trade secrets. However, it is always better to try to prevent disclosure in the first place.

If you would like to discuss any of the above further, please contact one of our Intellectual Property experts today.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.