Although not every company has patentable inventions, every company has trade secrets and they should be protected against disclosure or unauthorized use by others. A trade secret is any formula, pattern, device or compilation used in a business that gives the business a competitive advantage over others who do not know the secret. Customer lists, equipment specifications, formulas, even lists of clients' birthdays can be very valuable. The point is to recognize their value to your business and treat them accordingly.

Trade secret documents should be kept in a locked and secure place. Where appropriate, they should be stamped "Proprietary Confidential Information". Access to areas where confidential information is kept or used should be limited. Most importantly, employees should be made aware of their responsibilities insofar as your trade secrets are concerned both during and after their employment with your company. Written agreements with employees should specify that confidential information cannot be disclosed or used for any purpose other than the performance of their job duties.

Trade secret law protects your confidential business information from misappropriation. Although trade secret litigation may be costly and protracted, the steps necessary to attempt to protect your trade secrets from unauthorized use or disclosure are neither expensive nor complex. Taking these steps may even prevent misappropriation. But if they do not, and misappropriation does occur, your company will be in a better position to enforce its rights in litigation should you choose to do so.

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