The Importance of Reviewing IP Protocols

The global COVID-19 pandemic forced many companies to adapt to shelter-in-place orders by allowing their employees to work remotely.  In the haste to have workers get online as quickly as possible, many companies failed to implement proper protocols to protect their intellectual property as workers now had unfettered access to company databases and information. 

The Need for IP Protocols

As companies return to normal, many have found that their skilled workers are in high demand and are increasingly being lured away by competitors’ offers of employment. And as these workers leave, they often take with them valuable proprietary information in the form of client lists or marketing plans.  As such, companies should consider the need to reevaluate the security and intellectual property protocols they have in place to protect against such occurrences. 

For example, companies should audit their internal agreements and make sure that they have the proper non-compete, non-solicitation, and non-disclosure agreements in place.  Similarly, companies should ensure that any proprietary information that could qualify as trade secrets (e.g., client lists, marketing campaigns, prospective client lists, etc.) have explicit employee procedures that dictate how such sensitive information must be handled.  Companies should remember that, when evaluating whether certain information qualifies as a trade secret, courts will look at the efforts the company took to maintain the secrecy of the information. 

IP Protocols to Consider in Hiring New Employees

Companies on the receiving end of new employees, and subsequently, potentially stolen information should also take precautionary measures to avoid using stolen material as courts will try to strike a balance between an employer’s right to protect their proprietary information and an individual’s right to compete and seek gainful employment.  A company’s failure to adequately balance these interests can result in expensive legal judgments against them, or even worse, injunctions that prohibit them to do particular activities.  

To determine how best to tackle such challenges, companies should consult an experienced intellectual property attorney that can best advise on how to draft the appropriate agreements specific to individual company needs.

Key Takeaways on Revisiting IP Protocols in the Wake of the Pandemic

In the wake of the COVID-19 global pandemic, companies should audit their internal policies to determine whether:

• Adequate non-compete and non-disclosure agreements are in place;  

• Adequate non-solicitation agreements are being used; and

• Company policies properly dictate how to handle company trade secrets.

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