Trade Secret Self-Check: Is Your Secret Formula Actually Secret?

If your business has confidential information, or trade secrets, this beginning-of-year trade secret self-check could save you from losing valuable rights. Today, I’m walking you through how to audit your trade secrets.

First: What qualifies as a trade secret for your business?

Recipes, formulas, manufacturing processes, software code, customer lists, supplier information, marketing strategies, business methods.

Second: Are they actually secret?

For something to be a trade secret, you have to take reasonable steps to keep it confidential.

Physical security: Lock up documents; restrict access.

Digital security: Password-protect files; limit access on a need-to-know basis.

Contractual protections: Use NDAs with everyone who has access.

If you’re not taking these steps, you can’t claim trade secret protection.

Third: Do you have NDAs in place?

Every person who has access to your trade secrets should sign a non-disclosure agreement. Employees, contractors, vendors, partners, investors.

If you don’t have NDAs, get them signed this month.

Trade secrets can be extraordinarily valuable, but only if you protect them properly.

For a complete IP audit checklist, containing more trade secret audit items, as well as trademark, copyright, and patent audit items, click the button below.