In today's world of high-paced technology, companies face greater challenges than ever in protecting their confidential and proprietary information. Employees are more mobile than ever—and so is every employer's sensitive information.

Companies expend substantial time and resources to develop their products, services and marketing methods, as well as to cultivate customer relationships. Because a company has a legitimate interest in protecting those investments, there are steps it must take to maintain the secrecy of that information. When an employee wrongfully acquires, uses or discloses an employer's confidential information, it can cause significant damage to the company's competitive advantage. Although an employer may respond with legal action, such recourse can be costly, time-consuming, and distracting to the company's day-to-day business. Thus, employers should focus on steps to secure their sensitive information to prevent its compromise.

This article discusses the differences between confidential and trade secret information and outlines best practices for safeguarding such information to avoid the necessity of resorting to litigation remedies.

Trade Secrets Versus Other Confidential Information

As a threshold issue, employers should understand that not all information they deem “confidential” amounts to a trade secret. This distinction matters because trade secrets are entitled to heightened legal protections and remedies, outlined below. Confidential information that does not rise to the level of a trade secret still can enjoy legal protection, but only if an employer takes adequate steps to maintain its secrecy.