Trade secrets are a business’s intellectual property that gives it an edge in a competitive market. When safeguarding these confidential business assets, entrepreneurs should be aware that the biggest threats to trade secrets often come from within.
In the unfortunate event that a former employee intentionally or accidentally reveals a business’s trade secrets to its competitor, the affected business stands to suffer significant and reputational damage. Entrepreneurs can benefit from learning the right steps to take in the event of such a predicament.
Steps to take when a trade secret is stolen
Trade secrets can include anything from:
- Proprietary formulas
- Manufacturing processes
- Customer lists
- Business strategies
As soon as an entrepreneur suspects that any of these assets have been stolen, they should first identify the breach. Confirming how the breach occurred can include:
- Viewing email logs to see which former employees had access to sensitive information
- Speak with current employees who may have knowledge of the breach
- Identifying the scope and scale of the theft
Once the trade secret misappropriation has been confirmed, the affected business can benefit from having a skilled legal team guide their next steps. The chosen legal team can:
- Assess the severity of the breach
- Guide on legal options available
- Help ensure the business complies with any relevant regulations
Depending on the situation, the legal team may recommend filing a lawsuit, seeking a restraining order or negotiating a settlement.
Trade secret theft by a former employee is a serious threat that requires swift and strategic action. By identifying the breach and consulting a skilled legal team, an affected business can minimize the damage and protect the company’s valuable intellectual property. The key to handling trade secret theft is being proactive and prepared to safeguard a business’s future.