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Author Topic: Ways to Protect Trade Secret  (Read 1145 times)

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Ways to Protect Trade Secret
« on: August 22, 2013, 01:24:40 AM »
Most popular way of protecting trade secrets is through confidentiality or non-disclosure and non-compete clauses in an employment contract.

Companies should have rules and regulations for the protection of confidential information from contractors, consultants, vendors, customers, staffs, interns, visitors, non-employees working on site etc.

There is no government registration process in any country of the world that forces enterprises to reveal their confidential business information to the authorities in order to obtain trade secret rights.

So the cost of protecting trade secrets is largely the cost of putting in place an information security and protection policy and program in the company and the cost of monitoring, surveillance, audit and legal measures against insiders or outsiders who breach or try to breach the security system.
 
It is illegal to acquire anotherís trade secret if one knows or has reason to know that the trade secret was acquired by improper means. Improper means include theft, bribery, misrepresentation, breach or induced breach of a duty to maintain secrecy, or espionage by electronic or other means. Reverse engineering or independent derivations alone are not considered improper means. Thus, a trade secret suit will not succeed if an aspect of a productís design or construction has been obtained by examination of an item purchased in the marketplace.
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