A chief concern for many companies is protecting your proprietary data. Once a trade secret enters the public domain, its protection may be lost forever, even if the disclosure was inadvertent. Therefore, it is imperative to carefully monitor how employees use social networking websites.

 

A comprehensive social media policy is one of the most effective ways to reduce the risk of trade secret disclosures. At minimum, the policy should require employees to maintain the confidentiality of the company's trade secrets and proprietary information. While varying definitions of a "trade secret" exist, the Uniform Trade Secrets Act defines a trade secret as: 

 

• information, including a formula, pattern, compilation, program, device, method, technique, or process,
• that derives independent economic value, actual or potential, from not being generally known to or readily ascertainable through appropriate means by other persons who might obtain economic value from its disclosure or use; and
• is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 

In addition to defining a trade secret, providing examples of prohibited disclosures can help ensure that staff members know what topics or areas of the business are off limits. To reduce the risks of unauthorized disclosures, the policy should also specify who is allowed to post content to social media accounts created by the company.

 

Of course, simply having a policy in place is not enough. Businesses should provide employee training that emphasizes the importance of carefully guarding the company's proprietary information and the risks associated with social media. Provisions can also be added in employment-related contracts, such as non-disclosure and non-compete agreements, which provide legal remedies should employees reveal company trade secrets.

 

In addition, it is advisable to monitor how your business is being discussed online. Services such as Google Alerts can provide a daily list of all Internet mentions of specific terms, such as the name of your company or brand. If you detect the disclosure of a trade secret, it is imperative to send a written demand letter to the website, Internet service provider, or social media site and request the immediate removal of the confidential information.

 

Finally, it is important to stay on top of developments in social media. The technology continues to evolve and will likely pose more business challenges in the future.

 

How We Can Help

 

Social media should be a top concern for companies of all sizes. Our business attorneys can help your company minimize the legal risks associated with social networking by developing comprehensive policies and procedures. Contact us today to schedule an initial consultation.