My colleague Suzanne Oliver recently published a blog post on a case involving the misappropriation of trade secrets as a result of information acquired during acquisition discussions.
Read our previous blog HERE:
Such cases can function as reminders of the value of trade secret policies as part of any robust IP strategy when dealing with a third party. However, it is worth reflecting on what is likely to be a more common scenario that can lead to a loss of trade secrets.
In a recent case hitting the headlines, Palantir, a large US technology company, is suing tech start-up, Guardian AI. Guardian AI was founded by former employees of Palantir, with Palantir alleging trade secret theft by those former employees.
Employees, and indeed ex-employees, can be a significant source of a loss of trade secrets. In some cases, this may be through ignorance of their obligations, and in other cases this may be through malicious intent. This risk can be managed through appropriate trade secret policies to address the responsibilities of employees during their employment, and the ongoing obligation of ex-employees after they have left.
I recently published a blog post including some basic advice on trade secret management procedures. Some specific trade secret management tips targeted at employees are as follows:
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Use access controls to ensure that confidential information is only available to specific employees as required to undertake their work.
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Ensure new employees are aware of their obligations in relation to confidential information as part of any onboarding process. Periodic training can also be used to remind employees of their obligations and ensure that they are effectively educated on the topic of trade secrets.
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Cultivate an IP positive culture within the organisation that demonstrates a respect for IP.
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Provide an offboarding process prior to an employee leaving the company. This can include reminding the employee of their ongoing obligations with regard to the company’s trade secrets and removing access to the company’s systems.
In summary, trade secrets should be considered as part of a company’s IP strategy. Care must be taken to ensure that a company can benefit from trade secret protection through effective trade secret management procedures. In particular, consideration should be given to the risk of employees leaving a company and then disclosing, or otherwise using, the company’s trade secrets. It is important to ensure that employees are aware of their obligations with regards to confidential information during their employment, and their ongoing responsibilities after they leave.