“Proprietary information” is basically a fancy way to say “trade-secrets.” Your proprietary information consists of all of the intimate details of your business, service, or product that you would not want your customers, competitors, or the general public to know. This could be a secret formula, a production technique, a potential marketing strategy, or any other information that you would rather avoid sharing. Having your business’s secrets exposed will almost certainly affect your bottom line, so protecting proprietary information should be your business’s top priority.
What Can a Business Do to Protect Their Trade Secrets?
1. Limit Information to Relevant Personnel
The cashier at your restaurant probably doesn’t need to know the secret ingredient in your special sauce. Intimate knowledge of your plan to penetrate the Thai market is unlikely to help your front line supervisor in Charleston with her performance. Sharing intimate information with employees whose functions don’t rely on such knowledge is a sure way to open your business up to leaks and information theft. You may value the business, its information, and its future above all else, but is an entry-level employee who makes minimum wage going to have the same loyalty? Even if an employee is completely loyal, do they know how to protect confidential information? Employees at all levels are susceptible to being targeted by competitors, so it’s extremely important to only share information with employees who absolutely need to know.
2. Take Adequate Cybersecurity Measures
Ensure that passwords are complex enough to hinder hackers’ efforts. Passwords like “ABCD1234” are a great way to get your business hijacked and have everything you’ve worked so hard to achieve ruined in an instant. If much of your data is stored on servers, consider implementing a company intranet system. Constantly scan company hardware for key loggers and other malware, and if possible, block access to unsafe sites.
3. Keep Proprietary Information Separate
Your proprietary information should not be found in the same place as your everyday operational information. Your employees need to access certain information to effectively perform the duties of their job, and you don’t want them stumbling into your trade secrets! Keep your proprietary information under lock and key. If it’s accessible to everyone within your company, then it will eventually be seen by someone who doesn’t have your business’s best interests at heart.
4. Draft a Proper Nondisclosure Agreement
Employees, suppliers, and other businesses or entities that you commonly deal with should be made to sign an enforceable nondisclosure agreement. While it’s not a universally effective method, a nondisclosure agreement can be a hefty deterrent to potential information thieves.
5. Consult Experienced Legal Counsel
Aside from helping you draft a nondisclosure agreement, an experienced lawyer can help you navigate copyrights, patents, trademarks, and much more. Furthermore, it’s always good to have a familiar lawyer on your side in case any sensitive information happens to leak.
6. Monitor and Control Workspace Access
Is your business easy for any random person to physically access? While it may be easy to identify a non-employee and kick them out of your office, it’s much harder to identify any surveillance equipment that they may have left behind. Establish specific protocols for employee-access, and if these protocols are broken, then you must follow up with appropriate disciplinary action. Consider installing a key card system or a surveillance apparatus to deter trespassing and information theft.
7. Technical Surveillance Countermeasures
Hidden surveillance devices contribute to many leaks of sensitive company information. Businesses often hire agents to plant microphones, cameras, or other hardware in places where they can stealthily gather information and monitor activity within a workplace. This is sometimes referred to as technical surveillance. While technical surveillance is illegal, it’s worth the risk to the folks who attempt it.
Technical surveillance countermeasures (TSCM) have been developed to counteract this sketchy practice. With sensitive electronic equipment, anti-espionage professionals can sweep a workplace and detect hidden devices, protecting proprietary information from spies and eavesdroppers. On top of that, they can implement IT measures to minimize risks related to a business’s computer network. These professionals will thoroughly check all phone lines to determine whether they’ve been tapped, and all electronic devices can be examined for vulnerabilities. TSCM professionals know how to protect company proprietary information; it’s their full-time job!