Bass, Berry & Sims attorneys Curtis Capeling and Scott Thomas authored an article for Startup Nation outlining the importance of trade secrets for a business' growth, and how to protect these often overlooked assets. Trade secrets add value for companies planning to attract investors or eventually sell their business. Conversely, failure to preserve trade secrets that are a basis for a business' revenue can impair a company’s valuation.
There are many steps a business can take to protect its trade secrets. "Balance the value of a secret against the cost of measures needed to protect it. Think about steps a competitor might take to learn a secret, and thwart them. Employee leaks are the biggest risk to your trade secrets," Curtis and Scott recommend. State and federal laws protect trade secrets and if misappropriated there is considerable legal action companies can take.
"Trade secrets give you a competitive advantage and increase the value of your business. Take reasonable steps to protect them, and you will reap the rewards."
The full article, "Identifying and Protecting Trade Secrets for Young Companies," was published by Startup Nation on November 17, 2017, and is available online.