Are you wondering how to protect trade secrets for a San Diego business?  Trade secrets provide valuable protections for a company who wants to prevent employees or even business partners from taking what they’ve learned, customer lists, suppliers and processes in order to compete against their former employer.  What are the two factors that establish a valid trade secret for San Diego businesses?  What determines the legal standing for whether or not information can be considered a “trade secret” for San Diego Business?

Key Takeaways Regarding How to Protect Trade Secrets for a San Diego Business:

• A trade secret must be kept secret, with limited, regulated access.  It must also have genuine, “independent economic value” because it is not known to the general public or business community.
• A business must establish a specific process to establish, secure, document, and protect trade secrets.
• The misappropriation of trade secrets is absolutely enforceable here in California.  It is an effective tool to prevent investors, employees, business partners, and even customers or suppliers from using your company’s own internal and secret competitive advantage to compete against you.

The Basis of a Trade Secret

There are two determining factors based upon California law:

1. The information must have “independent economic value” due to being kept secret from the public or others who could obtain economic value from using it or disclosing it.
2. You must take “reasonable” steps to protect its secrecy.

Why Should You Establish Trade Secrets in Your Business?

The San Diego business attorneys at the Watkins Firm consistently discuss why its so important to establish trade secrets with our clients. California has outlawed non-compete agreements. The ability to protect trade secrets for a San Diego business has become that much more important, especially from an employer’s point of view.  Most employers are concerned about their employees using their company’s customer lists, product recipes and suppliers, processes and internal knowledge and information to leave the company and compete against them.  How do you protect yourself?

The answer may lie in the establishment and incorporation of trade secrets into your employment documents as well as Policies and procedures.  Business policies, HR handbooks and employment agreements incorporating the concept of trade secrets is a great strategy.  The two factors that establish a valid trade secret are also the key to preventing your employees from using what you teach them to compete against you.

Are You Wondering How to Protect Trade Secrets for Your San Diego Business?

There are specific California laws regarding the identification and protection of trade secrets within your LLC, S-Corporation, C-Corporation or California Professional Corporation.  The Watkins Firm can help you to develop and implement specific strategies in order to implement and protect the two factors that establish a valid trade secret.

If you are interested in protecting your business and learning more about the strategies to protect trade secrets within your business model we invite you to review our podcast Episode 10 – The Importance of a Strong Corporate Attorney as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.