Trade Secret Protection

An extremely important condition for the business prosperity is the protection of information, the possession of which gives certain advantages over competitors. Such information is of commercial value. Therefore, it is necessary to create conditions under which the probability of the leakage of your secrets will be minimized. Measures to ensure the protection of trade secrets can be divided into internal (measures within the company) and external (measures towards the counterparties).

The internal protection of trade secrets

The information becomes confidential by establishing a trade secret mode at company. To establish this mode, you need to determine the composition of the information that needs to be protected, and take a number of measures to protect it.

It is important to understand that it is impossible to set this mode for all the information. Well-known and easily accessible information, as well as information that can be obtained from registers and government agencies, cannot be a trade secret.

Once the composition of the information is determined, you need to draw up a list of it and serve it all the employees of the company, as well as counterparties, if necessary.

It is obvious that the list cannot be universal and should consider the specificity of work. The Trade Secrets Regulation is the main document that regulates measures to protect trade secrets. It should be developed and approved by the company.

The Trade Secrets Regulation determines:

1.       The composition of measures allowing and restricting the access to the information included to the trade secrets, on the part of employees, contractors and other persons;

2.       Rules for trade secrets carriers;

3.       Rights and obligations of the employer and employees;

4.       Responsibility for trade secrets disclosure;

5.       Other clauses that make it possible to establish clear rules of interaction under the trade secret mode within the company, as well as towards counterparties.

All employees of the company should be familiarized with the Regulation. Further, after the establishment of the trade secret mode, it is necessary to conclude the confidentiality undertaking.

The external protection of trade secrets

The main element of the external protection of the trade secrets (protection towards counterparties) is the confidentiality agreement between legal entities (a civil contract) which is concluded in writing and carries the following functions:

·         Regulation of the procedure and conditions for the usage of a trade secrets information by counterparties;

·         Establishment of the sanctions for the disclosure of the trade secrets that can be used in court to recover damages or impose a fine for its disclosure;

·         Intimidating and disciplining effect on the counterparty, showing the company's serious intentions to protect its trade secrets.

Protection of trade secrets is a complex process that requires increased attention, but the proper organization of the protection of trade secrets allows you to protect the intellectual property of your company and keep all trade and know-how secrets.

If you have more questions, the specialists of the Beliaevs & Partners group of companies are ready to provide you with legal advice and assist in drafting of all the necessary documents to protect trade secrets of your company. We are also inviting you to visit our specialized websites dedicated to the intellectual property: bvpatent.by and trademarks: trademarks.by