Recent court jury importance of strengthening commercial information and confidential

Over the past two months, two juries were each awarded 30 million dollars in damages separate trade secret cases. A jury in California Hansen Medical, Inc. $ 36,300,000 in damages a trade secret and breach of contract action against Luna Innovations, Inc. in late April. Recently jury in federal court in Atlanta awarded Lockheed Martin $ 37,300,000 in the event of a trade secret against L-3 Communications Corp., and a daughter.

Each of these casesmay be challenged and perhaps be explained. However, the size of judgments, but some important information for business. First, the judgments shows that trade secrets can have enormous value for companies. Companies that trade secrets should ensure that they are protected by Non-Disclosure Agreement ("NDAS") and other protective devices.

The extension of the non-disclosure agreements are required will vary from company to company. However, companies should considerNDA if necessary regarding the following categories of persons or companies are: (1) employees confidential information or trade secrets to use, (2) Consultants exposed to such information, (3) actual or potential customers, (4) actual or potential suppliers, (5) other companies in which a company is considering a common task of development, an agreement or "partnership", and (6) potential investors or merger and acquisition candidates.

Besides NDA, a company musttake other measures to ensure the confidentiality of information. These steps may also be restricted distribution, periodically warning employees about the need to maintain confidentiality, the storage of sensitive information under lock and key, password protection and a host of other types of security possible.

In contrast, companies that recruit employees who previously worked for competitors should take measures to ensure that these employees do not take their former employers 'trade secrets'. This canaddressed through work and other measures.

Employees planning to leave their employer and a competitor or start their own businesses should also adopt measures to prevent trade secrets involved in litigation. This can be as simple as having a clear understanding (preferably in writing) with the employer about what can and can not recruit staff when leaving and then stick to this understanding.