Departing employees are one of the most common sources of trade secret loss for businesses. These individuals often have access to sensitive information that could be used by a competitor if not properly protected. Fortunately, with proactive planning and legal safeguards, your company can reduce the risk of trade secret misappropriation. One of the most effective ways to do this is by working with a trade secrets attorney to build a strong defense strategy.
Protect Trade Secrets During Onboarding
You can require prospective employees to sign a confidentiality agreement, such as a non-disclosure agreement (NDA), as a condition of employment. This agreement should make clear that the employee must not disclose or use any trade secrets or proprietary information outside the scope of their job.
Employers should be cautious when using non-compete agreements. In some states, like California, non-competes are unenforceable. In other states, they must be narrowly tailored in terms of time, geography, and job scope to be legally valid. A trade secrets attorney can help ensure any agreements you use are enforceable under state law.
Take Action During Employment to Protect Confidential Information
Not every employee needs access to every trade secret. Limiting access to sensitive information on a need-to-know basis is a smart internal control. Departments or individuals should only be given the level of access necessary to perform their job duties. This minimizes the number of people who can potentially walk away with proprietary knowledge.
Your business should also maintain clear written policies and training for employees about how to identify, handle, and protect trade secrets during their employment.
Monitor Departures and Watch for Red Flags
While employees may retain general knowledge and skills after they leave, they are prohibited from taking or using actual trade secrets. If a former employee goes to work for a competitor, especially in a similar role, it’s important to monitor the situation closely.
Conduct an internal audit to determine what files, emails, or systems the employee accessed shortly before leaving. Look for signs of unauthorized downloads, email forwarding, or file transfers. You should also observe any unusual activity in the market, such as a competitor suddenly launching a similar product, which could indicate misuse of confidential information.
Take Prompt Legal Action When Necessary
If you suspect a former employee has taken your trade secrets, you must act quickly to protect your rights. Legal remedies may include:
- Seeking an injunction to prevent the employee or competitor from using the trade secrets.
- Requesting a court order to retrieve stolen data.
- Pursuing monetary damages, including potential punitive damages in cases of willful misconduct.
Under federal and state trade secret laws—including the Defend Trade Secrets Act (DTSA)—you may be able to hold both the employee and their new employer liable for misappropriation.
Work with a Trade Secrets Attorney to Prevent and Respond to Threats
An experienced trade secrets lawyer can help your business proactively safeguard valuable information and respond swiftly if a breach occurs. Your attorney can:
- Draft strong NDAs, non-competes (where allowed), and confidentiality agreements.
- Create internal policies and training procedures to protect trade secrets.
- Advise on employee access controls and monitoring.
- File lawsuits or obtain emergency injunctions when trade secrets are misappropriated.
Contact the Philadelphia Trade Secret Lawyers at The Gold Law Firm P.C.
To learn more about how you can effectively protect your trade secrets, get legal help from the Philadelphia trade secret lawyers at The Gold Law Firm P.C. Our experienced attorneys help businesses safeguard their valuable confidential information, and we can do the same for you. Schedule a free initial consultation by contacting us online or calling us today at 215-569-1999. Located in Philadelphia and Pennsauken, New Jersey, we serve clients in South Jersey and Southeastern Pennsylvania, including Wilkes-Barre, Scranton, and Northeast Philadelphia, Bucks County, Chester County, Delaware County, Lehigh County, Montgomery County, and Cherry Hill.
