With the shift to remote and hybrid workplace models, information that was once physically stored in an office may now be electronically accessed and transmitted across accounts, network connections, and cloud sharing services. In this series of articles, we have addressed protection of trade secrets under New Jersey and federal law for companies that invent, manufacture, or supply original technologies or processes, and outlined new and increased threats to trade secrets in light of the shift to an increased remote work model as a result of the COVID-19 pandemic. Now we analyze practical strategies and techniques for managing those threats.

Retention for Protection

Data leaks by former (or current) employees may be intentional or unintentional. Departing employees may be less diligent in following security protocols by using personal devices and networks, putting data unintentionally at risk. Intentional leaks may occur if an ex-employee purposefully retains and shares IP or trade secret information with their new employer. Ex-employees may use their access to their former employer's trade information or clients as a "selling point" to a new company. Some disgruntled employees may intentionally reveal or sell trade secret information to hackers and receive a portion of the ransom. In fact, some companies reported breaches of this type from ex-employees. Some employees need to be reminded, while they may have invested countless hours creating certain trade secrets or proprietary information, that data created for your employer generally belongs to the employer. You are not permitted to take your work product with you when you leave. Clearly, the risks posed by former employees are severe—and the Great Resignation will continue to exacerbate these risks if employers do not take adequate security measures.

The first step to prevent former employees from sharing trade secret information with future employers is, of course, to retain employees. But, retainment will not always be possible. Employers may nonetheless take measures to protect their information when an employee leaves the company, including: