Loose Lips and Trade Secret Enforcability

You’re not alone if whenever you think of Trade Secrets you think of the WWII saying “loose lips might sink ships.” But if you think about it, since there are no trade secret filings or registrations, or certificates, how do you even know if you even have an enforceable trade secret?

Unfortunately, you can’t know for sure until you try to enforce it in court against a thief. So, we encourage our IP training customers to teach their colleagues how to consider the enforceability question in terms of how a court would look at it.

Here are four general considerations for trade secret enforceability:

1️⃣ Is the information proprietary and does it provide a valuable competitive advantage when kept secret?

2️⃣ Do you have proper trade secret protections in place, including physical and technical security measures, as well as legal safeguards?

3️⃣ Is the trade secret process followed rigorously and can it be proven?

4️⃣ Was the secret still secret at the time of theft?

💡 The loss of trade secrets will expose your company to competitive disadvantage and financial setbacks, including loss of exclusivity and a setback for return on investment. Personal consequences include a damaged reputation and potential career setbacks.

🚫 Never take trade secret information with you when leaving employment. Remember, disclosing secrets to those who don’t need to know is the number one way trade secrets are lost.
Be aware of reverse engineering and competitive intelligence risks. Stay vigilant and take necessary precautions to protect your valuable trade secrets.

Stay informed, stay secure in your business!