Protecting your Company’s Secrets
Whether your secret involves the ingredients to your famous tea blend or the exporter from whom you purchase your prized leaves, a key to the success of many involved in the tea industry is the development and use of “trade secrets.” Trade secrets involve information that is known only by the company’s owner(s) and its agent(s), and gives the employer a commercial advantage over its competitors.
Trade secrets are protected by the Uniform Trade Secrets Act, which has been adopted by a majority of the states (with slight modification in some states). Assuming your tea business has information that qualifies for protection as a trade secret, whether the information was “kept secret” is generally regarded as the most significant factor, since courts have been more willing to protect information when it is not known in the trade or is discoverable only through extraordinary efforts.
Some of the more common examples of potential trade secrets include customer lists, customer pricing and preference information, marketing strategies, revenue projections, and product and pricing strategies as well as corporate and business marketing plans.
The following checklist provides tips on maintaining the confidential status of protected documents:
1) Are third parties and personnel with access to restricted information required to sign confidentiality agreements?
2) Are these individuals informed of the proprietary nature of the information through employee manuals, memoranda reminding employees of the confidential nature, etc.?
3) Is the confidential data maintained with restrictive access, such as in a locked cabinet?
4) Is access to the private information limited to only those with a specific need for it?
5) Are desks locked and access limited only to those with need?
6) Is the number of copies of the confidential documents kept to a minimum?
7) Is the data marketed as “Confidential” or “Restricted Access” clearly and boldly?
8) Are visitors and nonessential personnel restricted from areas in which these confidential materials are housed?
9) Are the doors to where the confidential documents are stored locked at all times?
10) Are employees instructed not to discuss confidential information in the presence of visitors or vendors who may intentionally or unintentionally overhear the conversation?
In deciding whether the company went through the necessary precautions to protect the information, courts will look at the totality of the measures taken. The more documented measures you can show the court, the more seriously the court will hold your efforts to maintain confidential information.
DISCLAIMER
The information contained in this document is provided by LegalTEAS, LLC and may be used for informational purposes only and DOES NOT constitute legal advice. All materials on this site are subject to the terms and conditions stated in the Disclaimer Page. This material is intended, but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as an indication of future results. Transmission of the information is not intended to create, and the receipt does not constitute, an attorney-client relationship between sender and receiver. This information is offered only for general informational and educational purposes. The information contained herein is not offered as and does not constitute legal advice or legal opinions. You should not act or rely on any information contained herein without first seeking the advice of an attorney. By viewing any materials from or associated with http://legalteas.blogspot.com/, http://www.legalteas.com/, or any site owned or related to LegalTEAS, LLC (described herein as “the Sites”), you agree with these aformentioned terms. If you do not agree to them, do not use the Sites or download/print any materials from them.
Whether your secret involves the ingredients to your famous tea blend or the exporter from whom you purchase your prized leaves, a key to the success of many involved in the tea industry is the development and use of “trade secrets.” Trade secrets involve information that is known only by the company’s owner(s) and its agent(s), and gives the employer a commercial advantage over its competitors.
Trade secrets are protected by the Uniform Trade Secrets Act, which has been adopted by a majority of the states (with slight modification in some states). Assuming your tea business has information that qualifies for protection as a trade secret, whether the information was “kept secret” is generally regarded as the most significant factor, since courts have been more willing to protect information when it is not known in the trade or is discoverable only through extraordinary efforts.
Some of the more common examples of potential trade secrets include customer lists, customer pricing and preference information, marketing strategies, revenue projections, and product and pricing strategies as well as corporate and business marketing plans.
The following checklist provides tips on maintaining the confidential status of protected documents:
1) Are third parties and personnel with access to restricted information required to sign confidentiality agreements?
2) Are these individuals informed of the proprietary nature of the information through employee manuals, memoranda reminding employees of the confidential nature, etc.?
3) Is the confidential data maintained with restrictive access, such as in a locked cabinet?
4) Is access to the private information limited to only those with a specific need for it?
5) Are desks locked and access limited only to those with need?
6) Is the number of copies of the confidential documents kept to a minimum?
7) Is the data marketed as “Confidential” or “Restricted Access” clearly and boldly?
8) Are visitors and nonessential personnel restricted from areas in which these confidential materials are housed?
9) Are the doors to where the confidential documents are stored locked at all times?
10) Are employees instructed not to discuss confidential information in the presence of visitors or vendors who may intentionally or unintentionally overhear the conversation?
In deciding whether the company went through the necessary precautions to protect the information, courts will look at the totality of the measures taken. The more documented measures you can show the court, the more seriously the court will hold your efforts to maintain confidential information.
DISCLAIMER
The information contained in this document is provided by LegalTEAS, LLC and may be used for informational purposes only and DOES NOT constitute legal advice. All materials on this site are subject to the terms and conditions stated in the Disclaimer Page. This material is intended, but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as an indication of future results. Transmission of the information is not intended to create, and the receipt does not constitute, an attorney-client relationship between sender and receiver. This information is offered only for general informational and educational purposes. The information contained herein is not offered as and does not constitute legal advice or legal opinions. You should not act or rely on any information contained herein without first seeking the advice of an attorney. By viewing any materials from or associated with http://legalteas.blogspot.com/, http://www.legalteas.com/, or any site owned or related to LegalTEAS, LLC (described herein as “the Sites”), you agree with these aformentioned terms. If you do not agree to them, do not use the Sites or download/print any materials from them.
