Nondisclosure agreements are one way to prevent the misappropriation of trade secrets. Employers can still use them after the Federal Trade Commission’s (FTC’s) Jan. 5 proposed rule to prohibit noncompetes, but only if nondisclosure agreements aren’t worded too broadly.
Simply put, a trade secret is information used in a company’s business that is not known or readily accessible by competitors, that is protected from disclosure through reasonable efforts to maintain its secrecy, and that either provides a competitive advantage in the marketplace or has commercial value, said Steve Blonder, an attorney with Much in Chicago.
