David Pardue and Amy Allen Hinson wrote in Industry Today about one of the most notable trade secret rulings of 2023 so far — and what manufacturers can do to maximize trade secret protection.
"To make sure a company does truly own its trade secrets, the first step is to identify them," David and Amy wrote. "A company’s trade secret typically involves information that isn’t public and brings the company economic value. This is the 'special sauce' but also includes the production process."
"Manufacturers should be as specific as possible in identifying what their trade secrets are, including in their legal agreements and in conversations with employees," they continued. "It’s a common pitfall for companies to be vague and overly inclusive about the secret in the secret sauce when attempting to thwart the loss of business from lost information. A proper trade secret management program will distill a large amount of information into the essential features that make the secrets profitable and therefore constitute the trade secrets."
"Trade secret management cannot be a one-off 'project' in which trade secrets are identified and then considered permanent," David and Amy wrote. "Just as technology constantly changes, trade secrets evolve, update, and change. Couple that with employee turnover and this means it’s all the more important for companies to ensure that they are putting enough resources into tracking how the trade secret data is evolving."
You can read the full article here: Jury Verdict Shows Importance of Managing Trade Secrets
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