Trade secrets aren’t just technical formulas or proprietary code, they’re often the quiet competitive edges that make a business stand out. A client list, a pricing model, a process refinement, when protected properly, these assets drive growth and position a company to lead its market.
But when they’re compromised, whether through theft, carelessness, or a departing employee, the damage can be swift and difficult to recover from.
While legal remedies exist, they’re often slow, expensive, and reactive. The better path? A proactive approach that limits exposure, deters bad actors, and strengthens internal accountability.
Understand What You’re Protecting
Many organizations have trade secrets they don’t formally recognize as such. Start by identifying what qualifies:
- Confidential customer or vendor data
- Proprietary algorithms or formulas
- Non-public business strategies
- Internal methodologies or workflows
- Pricing models or margin structures
- Product development roadmaps
If the loss of certain information would meaningfully harm your business or benefit a competitor, it’s worth classifying and protecting.
Restrict Access Strategically
Not everyone in an organization needs access to everything. Create layers of access based on job function, and regularly review who has visibility into sensitive information. Too often, companies fail to revoke access when employees change roles or leave entirely, leaving behind open doors to confidential data.
Pair access restrictions with strong offboarding protocols. Departing employees should undergo structured exit processes that include:
- Timely deactivation of accounts and credentials
- Exit interviews that reaffirm confidentiality obligations
- A review of devices, cloud services, and personal accounts tied to work materials
Strengthen Your Agreements
Employment contracts and NDAs (non-disclosure agreements) can be powerful tools when they’re used correctly and tailored to your business.
Avoid boilerplate templates. Instead, ensure your agreements clearly define:
- What constitutes a trade secret in your specific context
- What post-employment restrictions apply (if any)
- How confidential information must be handled or returned upon exit
If you work with vendors, contractors, or freelancers, extend similar protections to those relationships as well.
Invest in Culture as Much as Technology
Even the best policies and technical controls can be undone by a single careless or disgruntled employee. That’s why internal culture matters.
Create an environment where employees:
- Understand the value of the information they work with
- Know the policies that govern its use and protection
- Feel a shared responsibility for safeguarding company assets
Regular, plain-language training can go a long way. So can setting an example at the leadership level.
Monitor: Quietly, Legally, and Ethically
Monitoring doesn’t have to mean surveillance. But you should have visibility into how data is accessed, moved, and shared, especially with cloud-based systems or remote teams.
Behavioral monitoring, data access logs, and audit trails can help flag:
- Unusual downloads or file transfers
- Unauthorized device connections
- Suspicious access to sensitive folders or systems
This kind of visibility often provides early warnings when someone is preparing to leave or preparing to take something with them.
Be Ready to Respond
Even with proactive measures in place, incidents still happen. What separates companies that recover quickly from those that don’t is the ability to act quickly and decisively.
If you suspect trade secret theft:
- Document the timeline and facts
- Preserve digital evidence immediately
- Avoid confrontation without legal or investigative guidance
- Engage qualified investigators to assess scope and confirm details
- Involve counsel to evaluate civil or criminal action, if needed
Swailes has handled a wide range of sensitive investigations involving theft of confidential business information. Our work balances discretion, thoroughness, and legal readiness helping clients recover their advantage and protect their future.
If you’re looking to protect your organization’s most valuable information, Swailes offers the experience and discretion to help you move forward with confidence. Our team is ready to support you wherever you are in the process.