EFaragi IP Litigation Reporter 1.30.07.pdf

Introduction

When most people think of trade secrets, they imagine Coca-Cola's famous recipe locked in a heavily secured vault or the names of Colonel Sanders' 11 herbs and spices
dancing in the heads of a select few KFC executives. The truth is that many companies -- large and small -- maintain their competitive advantage by using trade secrets that may be as mundane as source code and customer telephone lists. As technology continues to facilitatethe rapid transfer of information, employees must be able to recognize when they are dealing with trade secrets and use strategies to avoid disseminating legally protected proprietary information.

Read the full analysis in the linked file ~ Jon

Conclusion

Trade secrets are a common, but potentially powerful, form of intellectual property. Businesses must be particularly careful when dealing with trade secrets because,
unlike the case with patents or trademarks, for example, failure to maintain the confidentiality required for trade secret protection can result in a complete loss of rights.
Those who improperly acquire or use trade secrets may face injunctions and may be forced to pay substantial monetary damages. Employees must learn to identify information that qualifies for trade secret protection and must adopt strategies
to prevent its inadvertent dissemination. Employees should always become familiar with their companies' policies governing confidential information and should
consult with their managers when not sure whether a particular piece of information is a trade secret. Trade secrets present many risks and opportunities, and the most prudent approach to managing them is to consult with intellectual property counsel on a regular basis.