Business secrets (Trade secrets) are widely used by small and medium-sized enterprises. In fact, many small and medium-sized enterprises rely on trade secrets to protect their intellectual property (although in many cases, they may not be aware that trade secrets are legally protected). Therefore, it is important to ensure that businesses take all necessary measures to effectively protect their trade secrets. These measures include:
- Equipping an information security system and protection program for the entire business.
- Providing company employees with clear definitions and guidelines on how to access, manage, protect, distribute, label, and/or disclose any trade secret information.
- Identifying and prioritizing trade secrets based on their value and sensitivity.
- Considering whether trade secrets can be protected by formally registering intellectual property rights, such as patents, and if that is a better protection method.
- Ensuring that only a limited number of individuals have access to and knowledge of any business’s trade secret information, and that they are aware that it is confidential.
- Incorporating confidentiality clauses into employment contracts. In some countries, employees have a duty to transfer trade secrets to their employers even without such clauses. The obligation to keep trade secrets generally continues for a specified period, even after the employee leaves the job.
- Signing non-disclosure (confidentiality) agreements with business partners whenever trade secrets are disclosed.
- Establishing effective security systems to manage digital information on the company’s internal network, including technical measures, software, and encryption to restrict access to classified information, a transaction monitoring system, and a system to prevent or monitor access to trade secret information.
