Guard your Trade Secrets, Make a Non Disclosure Agreement

Numerous businesses owe the success achieved by their company to a trade secret. Because of its importance, protecting it is considered a must. A non disclosure or confidentiality agreement is important for those who need to guard their company’s classified information.

Applications for patent should be filed within a year of the initial public disclosure. But under the protection of a non disclosure agreement, an inventor may be allowed to share information concerning the invention prior to the possession of a patent.


Elements You Should Include in a Non Disclosure Agreement

The contents that will be included in the agreement will greatly dictate its usefulness. For those who are planning to make a non disclosure agreement, here are some of the things you should do to make an effective contract:

* Define the confidential information to be included. This is the most significant part of the agreement. You must be specific when defining it so that everything will be included and covered.
* Explain why the agreement is needed. There is a reason why vital information is disclosed to another person or party. This reason should be clearly stated in the agreement.
* Emphasize that the recipient is prohibited to use the information for private purposes. It can only be used for reasons specified in the agreement.


Here are additional tips on how to guard a trade secret:

Mark all documents that have protected information

Documents that reflect or have trade secret information must be marked “confidential.” There should also be a limit in its circulation and production.

Secure all computers

People should first have the right computer password before they can view documents or access certain files that contain confidential information.

Provide sufficient security

For companies that store documents in a filing cabinet, be sure that is locked when unsupervised. Big companies might need to hire security officers.

Check where the secret information is kept

Perform an information audit so that you will know where important information is stored. You should also know all people who can view such information. Check all laptop computers, desktop, and hard copies. Look for possible weak spots which can be exploited by employees.


Conduct employee training and provide policies

All employees who work with trade secrets or have access to confidential information should be required to have proper training. They should be oriented on the company’s policy in handling and protecting confidential information. If someone mishandles secret information, let him or her know what happened and take proper disciplinary action if the situation requires it.

Conduct exit audits with all employees who wish to leave the company. You can require them to return all materials containing the trade secret. They should also be reminded that revealing information received during the time of employment is prohibited.

If confidential information or a trade secret was disclosed to an unauthorized party, ask the help of a business lawyer who is trained in handling cases on non disclosure agreements.