Confidential Information: Protecting Your Ideas and Know-How

Are you involved in pitching innovative ideas or designs for tenders or investment opportunities? Do your employees have access to sensitive client information? Is your manufacturer aware of detailed information about your products or suppliers?

While these types of information may not always be protected under intellectual property laws, you may still have legal recourse under the law of confidential information.

What Is Confidential Information?

Confidential information includes a broad range of data that is not publicly available and carries commercial value. This can include:

• Business Plans
• Client Lists
• Trade Secrets
• Designs and Ideas that have not yet been made public.

To protect confidential information, three key elements must usually be established:

1. Does the information have the necessary quality of confidence? In simple terms, this means the information is not publicly available and has some commercial value.
2. Was the information obtained in a manner which indicates that the information is confidential? Confidential status can arise in three ways:

• • Through contractual agreements, such as non-disclosure agreements (NDAs).
  • In circumstances where a reasonable person would understand that the information was shared in confidence.
  • Due to the nature of the relationship between the parties involved, such as an employer-employee or client-professional advisor relationship.

3. Has the information been used, without authority, in a way that damages the party that owns it?

If these criteria are met, you may have the grounds for a legal claim, which could result in an injunction, damages, or both.

Tips for Protecting Your Confidential Information:

• Take proactive steps to keep your information secure and prevent it from entering the public domain. This includes encrypting files, instituting robust physical and digital security protocols, and limiting information access to individuals who genuinely require it.
• Create NDAs for employees, contractors, and partners before sharing any confidential information. This formalises their commitment to protect your sensitive data and provides legal recourse in the event of a breach.
• Regularly emphasise the confidential nature of your information. Label documents as CONFIDENTIAL and conduct regular training sessions on the importance of safeguarding confidential information and the specific steps employees should take to protect it.
• Keep track of your confidential data and maintain visibility over its whereabouts. If you provide an employee with confidential documentation, ensure that they return or securely dispose of it when it is no longer needed, and certainly when they leave your organization.

By employing these strategies and understanding your rights, you can effectively protect your valuable confidential information from unauthorised access and misuse. If you have any questions about protecting your ideas and know-how, please drop us an email or give us a call and we will be happy to arrange a free consultation with one of our specialist IP lawyers.