Trade Secrets for the Small Business

Thanks to the Trade Secrets Blog for pointing the way to Business Week's Heading Off Trade Secret Theft. The article is in interview form. I bring out these two questions and answers for emphasis but all of this interview needs read by small business owners:

What can a small business do to try to head off the loss of important information?
I think the best chance to reduce theft is by educating employees and ensuring that they understand their obligations to guard confidential information. Having a clearly written policy that ensures understanding amongst employees about what their obligations are is critical.

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Once you have those policies and agreements in place, how else can you maintain vigilance about protecting your company's confidential information?
Business owners who are concerned should safeguard their information by securing physical files with keys, or computer files with passwords. They might also want to secure certain parts of the building, so they don't allow public access to manufacturing plants or offices where key employees are developing new products.

It's not a bad idea to give people access only on a need-to-know basis. If there's a legal case at some point, the court will consider whether the company has taken reasonable steps to protect the sensitive information.

Also read the Trade Secret Blog's Heading Off Trade Secret Theft.

What causes most trade secret litigation? Employees stealing one employer's trade secrets and going to work for a competitor. See my articles about this problem here and here and here and here.