Trade Secrets
Protecting the information your business can't afford to loseSome of the most valuable information a company owns can never be registered. Customer lists. Pricing models. Manufacturing processes. Algorithms. Supplier terms. Product roadmaps. The methods making your operation work better than a competitor’s.
Trade secret protection covers all of it, and it works differently from every other form of intellectual property. There is no application and no certificate. Protection exists only for as long as the information stays secret and you take reasonable steps to keep it that way.
Trade secrets are the only IP right you can lose through inattention.
Where Trade Secrets and Employment Overlap
Most trade secret exposure walks in and out of the building. Employees and contractors have legitimate access to confidential information, and the risk arrives when they leave.
Protection depends on what was documented while the relationship was healthy. Confidentiality obligations, IP assignment, defined scope of access, and a departure process actually followed. Non-compete enforceability varies widely by state and in some jurisdictions is unavailable entirely, which raises the importance of the agreements holding up everywhere.
HMLG builds these programs to be practical enough for a company to actually use.
What HMLG Handles
- Trade secret identification and classification
- Confidentiality and non-disclosure agreements
- Employee and contractor confidentiality obligations
- IP assignment and invention agreements
- Access control and information handling policies
- Onboarding and departure procedures
- Vendor, supplier, and partner confidentiality terms
- Trade secret provisions in licensing and joint development agreements
- Diligence on trade secret assets in transactions
- Response to suspected misappropriation
- Coordination with litigation counsel where enforcement requires it
FAQ
What qualifies as a trade secret?
Information deriving economic value from not being generally known, not readily ascertainable by others, and subject to reasonable efforts to maintain secrecy. Common examples include customer lists, pricing, formulas, processes, algorithms, and business methods.
How is a trade secret different from a patent?
A patent requires public disclosure in exchange for a limited exclusive right. A trade secret requires the opposite and lasts indefinitely, but only while the information stays secret. A trade secret provides no protection against someone who independently develops or reverse engineers the same information.
Do I need to register a trade secret?
No. There is no registration. Protection comes from the information’s value, its secrecy, and the reasonable measures you take to protect it.
What are reasonable measures to protect a trade secret?
Common measures include confidentiality agreements with employees, contractors, and vendors, restricted access on a need to know basis, marking and handling procedures, network and physical security, and defined onboarding and departure processes.
What happens if an employee takes our trade secrets to a competitor?
Options depend on what was documented beforehand. Remedies can include injunctive relief and damages under state trade secret law and the federal Defend Trade Secrets Act. The strength of a claim usually turns on whether the company can show it treated the information as secret.
Should confidentiality obligations survive the end of a contract?
Yes. Confidentiality provisions should survive termination, and for trade secrets specifically they should continue for as long as the information remains secret rather than expiring on a fixed date.
ARE YOU READY TO TRANSFORM YOUR LEGAL STRATEGY?
Let’s connect! Whether you’re looking for an in-house legal team or need to augment your existing counsel, HMLG is ready to help you rock your business.
Contact us today to learn how we can assist you with practical, proactive, world-class legal support.
3213 Harbor Avenue SW, Ste. A2
Seattle, WA 98126
(206) 774-0879