Trade Secrets: What They Are and How to Protect Them

If you possess the entrepreneurial spirit and the drive to work hard, it may be well worth it for you to take the risk and forge ahead in opening your own company. From coming up with a good idea and quitting your day job to raising the necessary capital and hiring a good team, there is a never-ending list of details to take care of—and that intensifies as your business takes off and grows.

If you have created a successful business model and are watching it thrive, chances are your company is extremely precious to you. Most ventures require your blood, sweat, and tears—and what sometimes seem like endless hours of work. The light at the end of the tunnel, and the reward, is a successful business. After so much time and effort, you are probably extremely protective of what you have built. That begins with client information and client lists. This is valuable data you don’t want walking away with exiting employees or contractors. Having to fight for accounts that you created and built on can lead to an extreme amount of stress, conflict, and even a legal battle. The more successful your business is, the more important it is to protect everything, to include your general business practices, marketing campaigns, plans—and those trade secrets which are central to your company.

Depending on the nature of your business, trade secrets could vary from intricate and original product designs to unique formulas. You could have created secret recipes, devices, a method, or software and algorithms that no one else has, but that they may certainly want.

If your trade secrets are integral to your business, consult with an attorney experienced in intellectual property law like Attorney Shane Coons. Aside from those who discover the same items completely on their own, you can take recourse against those who share or steal your trade secrets. Preventative measures will save you a great deal of headache though—along with the potential for financial loss.

Your employees and everyone involved in creating the trade secret should be bound by a confidentiality agreement. This includes independent contractors. Non-disclosure agreements and non-compete clauses should be considered, although they are not always in enforceable in California. Discuss what types of contracts should be drawn up with your attorney, as well as what action should be taken against any individuals who learned about your trade secrets and shared them or stole them. You must be able to prove that the information was confidential and that your company was taking required measures to keep such information secret.

If your business needs experienced legal help regarding intellectual property issues or disputes, contact Shane Coons now at 949-333-0900 or email at Shane.Coons@seclawoffices.com. Our law office represents clients involved in a wide range of businesses and legal issues, and we would be glad to review your case and help you explore your options.

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Trade Secrets: What They Are and How to Protect Them

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