Trade secrets are important and critical information about your business that people working for you: might have access to. They are most likely going to be some employees in the company who are trusted with having access do the kind of information that is pertinent and critical to the functioning of your business such as farmlands, list of suppliers, customer details as well as marketing and advertising techniques. This information is at danger if the people why your employees today want to leave and join another competing business tomorrow.
The laws treat trade secrets as intellectual property and it is illegal for anybody to steal them. Under the uniform trade secrets act which is enforceable in most of the states in the United States, information counts as trade secrets if it meets the following 3 criteria.
1st, it must have independent economic value to people outside the company.
2nd, the information must be generally unknown and unlikely to be discovered by lawful means.
3rd, the owner of the business trade secret must make efforts to maintain the secret.
All of the above-mentioned 3 points are extremely important if you want to preserve information about your business and prevent it from getting stolen.
For example, the 3rd point states that you must make reasonable efforts to safeguard the information in the 1st place or it cannot be counted as a trade secret. This means that if you have not duly safeguarded the information from casual or easy access by your employees, then the argument 4 trade secret protection will not stand in court even if one of your employees does happen to compromise it to your competitor.
The kind of effort that you need to put into safeguarding your information also needs to be substantial. Speak to a professional about this. Just putting the information in a password-protected directly may also not be sufficient to qualify it as protected and secret business information.
However, one of the trickiest point here is that the law cannot expect or ask an employee to forget the information or erase it from his mind. Even though the employee might not steal any information physically, you cannot do anything about the information that he remembers and something which he might use to the detriment of your business with a competing business.
For this reason companies and businesses include a covenant not to compete in the employment contract. This covenant states that the employee who works for your business is not allowed to work for competing business for a specified period of time. This government also needs to be reasonable and cannot forget the employee for working in the same industry anywhere in the state for 10 years. Added and trademark searches for any names and logos that you considering for your business? You can start a preliminary research online but is advisable. This is unreasonable and would probably not stand to argument in the courtroom.