The New Normal: Protecting Trade Secrets in Remote Work Environments

Trade secrets, as defined by the World Intellectual Property Organization or WIPO, are intellectual property rights on confidential information, such as formulas, patterns, or processes, that can be sold or licensed. The owner intends to hide this information to prevent competitors and would-be competitors from stealing or using it.

With the shift of businesses and workplaces to remote setups, there is a higher risk of trade secret theft. Companies need to exert extra effort to develop and implement strategies to maintain the confidentiality of their trade secrets.

This article will discuss the risks and strategies to consider to ensure that trade secrets are well protected in a remote environment.

Trade Secret Vulnerabilities in Remote Work Setup

Work-from-home setups pose a higher risk for trade secret theft. Here are some of the risks that can lead to employees misappropriating trade secrets:

• Remote access: Employees might use their personal devices to access company information, resulting in a higher risk of unauthorized access.
• Unsecured networks: The use of unsecured or public Wi-Fi networks can give hackers an easier way to access sensitive information.
• Lack of supervision: Monitoring employees’ activities is a challenge for managers.
• Workspace security: There is no assurance that employees’ workspace at home is secure, resulting in a higher chance of trade secret theft, loss, or unintentional exposure.

Trade Secret Protection Strategies to Mitigate Risks

• Implement remote work policies that require employees to have enhanced protection for confidential files.
• Avoid using public Wi-Fi networks or other unsecured networks when accessing company information. If it can’t be helped but to use public networks, make sure to use secure VPNs.
• Limit access to trade secrets to employees who need that information for their job responsibilities.
• Properly label the information to avoid accidental exposure of the crown jewels of the company.
• Ensure that employees sign confidentiality agreements, such as non-disclosure agreements.
• Remind employees to only use company-issued devices when accessing trade secrets.
• Implement the necessary cyber security strategies to safeguard all confidential information.
• Retrieve all confidential information entrusted to departing employees and remind them not to use it moving forward.

Work-from-home setups have been a global trend, offering advantages for both employees and employers but increasing the risk of trade secret theft. Taking a proactive and adaptable approach is essential for achieving long-term success in ensuring the security of trade secrets within a remote working environment.

Ready to learn more about trade secrets? Join our upcoming webinar: Trade Secrets: The Basics, New Developments, and Hot Topics for Trade Secret IP