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Five Strategies for Protecting Trade Secrets

In a post-Defend Trade Secrets Act world, employers have a host of civil remedies available to them for the misappropriation of trade secrets under both state and federal law. To obtain relief, an employer must establish that the information it claims is subject to trade secret protection is, in fact, protected as confidential and secret. Below we outline five actions an employer might consider to demonstrate it has taken the necessary measures to protect the secrecy of its confidential information. 

  1. Written agreements with employees who have access to trade secrets. These agreements may contain confidentiality, non-disclosure, non-solicitation, or non-competition provisions. To be effective, it is critical that such agreements define clearly what constitutes “confidential information,” and include a clause affirmatively requiring the return of such “confidential information” upon the termination or resignation of the employee. 
  2. Written policies governing employee conduct. Employers should set forth clear rules for marking and maintaining confidential information, such as written instructions related to copying and sharing of confidential information. Employers can also include restrictions on the sharing or disclosure of confidential information in employee handbooks or other policies that are shared with all employees. 
  3. Limiting employee access to trade secrets. This may include limiting physical access to documents stored in hard copy, by, for example, limiting locations where the confidential information is maintained, locking those locations, and tracking individuals accessing the information. Employers should also take care to protect electronically-stored information by, for example, employing password protection on documents and databases containing confidential information, restricting access to such documents on external devices, and implementing security monitoring measures. 
  4. Limiting outsiders’ access. Similarly, employers should limit outsider access to areas housing confidential physical documents and devices with access to electronically stored information. Depending on the information, this may include the use of security guards or cameras, perimeter fencing, visitor badges with log in and out procedures, and security card access to certain areas.
  5. Controls on public dissemination. Employers may consider designating an employee to review and approve publicly disseminated information, including publications, presentations, promotional materials, and website content to ensure trade secret information is not inadvertently disclosed. Employers should also carefully evaluate the scope of information shared in meetings with potential partners or customers, and may further consider requiring meeting participants to enter into non-disclosure agreements if confidential information must necessarily be shared. 

Employers should remember that any security measures should be regularly monitored, audited, and updated to maintain their effectiveness. Efforts to maintain these procedures may pay dividends should the employer have to pursue a former employee for trade secret theft. 

© Polsinelli PC, Polsinelli LLP in California

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About this Author

Emma R. Schuering, Polsinelli PC, FMLA Matters Attorney, labor and employment lawyer, kansas city
Associate

For each engagement in which Emma Schuering is involved, she seeks to provide concise and articulate legal counsel that aligns with clients’ business objectives. Emma represents employers in a variety of employment litigation matters, including the enforcement of non-compete agreements and FMLA claims. She also focuses her practice on appeals and dispositive motions.

Prior to joining Polsinelli, Emma worked as a law clerk at the Missouri Court of Appeals, Southern District, in Springfield, Missouri. During her tenure, Emma was exposed to number...

816.360.4281
Shareholder/ Practice Chair

As Chair of the firm's Restrictive Covenants & Trade Secrets practice, Eric Packel is a trial lawyer who represents local and national businesses in complex employment litigation, particularly claims brought under the Uniform Trade Secrets Act, and a variety of employee and shareholder related claims. For many of these clients, Eric also oversees and directs their general legal needs and consults them in their overall business strategies. Over the course of 20 years, Eric has tried cases to juries in five states, including:

  • Violations of the Uniform Trade Secrets Act
  • Claims brought under Federal and State anti-discrimination statutes 
  • Breach of Operating Agreements 
  • Breach of Employment Agreements 
  • Breach of fiduciary duties     
  • First Amendment 

Regularly leading a team that handles all of the employment discrimination allegations brought against a large healthcare institution, which employs more than 7,000 employees, Eric has defended the institution in multiple Charges of Discrimination before the Equal Employment Opportunity Commission and a state Human Rights Commission for the last 5 years. To date, none of those Charges has resulted in a “Cause” Determination. He also works with information and security, food and ingredient manufacturing, and financial services cases. 

816- 360- 4249