5 trade secret protection risks to consider during pandemic

In light of the COVID-19 outbreak, companies have changed their core business operations and instituted new practices and procedures in the blink of an eye. The changes, perhaps unknowingly, have created risks that could jeopardize the protection of valuable trade secrets. A trade secret, as defined by the Uniform Trade Secrets Act (UTSA), is information that derives independent economic value from not being generally known or readily ascertainable by others and that is the subject of reasonable efforts under the circumstances to maintain its secrecy. Here are five ways the pandemic and its effects could threaten trade secret protection.

1. COVID-19 innovation

In the wake of the pandemic, many companies have deployed know-how and manufacturing capabilities in new and different ways. From automotive companies manufacturing ventilators to an outdoor goods company making face shields, the contagion drove light-speed innovation. The developments included the use of both existing and new trade secrets.

Much of the innovative activity was accelerated by the health crisis and may not have been accompanied by the typical steps to ensure trade secret protection. For example, it's possible you disclosed trade secrets to new business partners or customers without an appropriate nondisclosure agreement in place. Alternatively, you may have developed new technology in collaboration with others without clearly defining who owns the resulting intellectual property.