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Seven Tips for Protecting your Business Trade Secrets As the saying goes; there are only six degrees of separation between you and potentially anyone in the world. While this provides a wonderful social networking opportunity; it also raises all sorts of competitive issues when running a business. Are there really six degrees of separation between you and your competitor? 1. Limit the amount of data exposed to third partiesWhen using a third party provider who has access to your businesses files; such an IT firm or external contractors, it is wise to limit the amount of information they have access to at any one time. Your business's files and data should be on a need-to-know basis only. Permission to view files should be given by exception, not by default. This is especially important when using providers in offshore locations. 
2. Encryption and Password SecurityIf your files allow you to have passwords or encryption, why not enable it. Your passwords don't need to be elaborate 47 digit, random uncrackable passwords. A simple password is the difference between opening your files unhindered, and making it more difficult. This is especially important when transferring confidential files over the internet or via email. 3. Non-Disclosure AgreementsNon-Disclosure Agreements should be part of anyone's outsourcing toolkit. Have your solicitor draft a pro-forma NDA for you. The cost incurred may be insignificant compared to the impact of your trade secrets becoming common knowledge. 4. Smoke and MirrorsWhen using a new or an offshore provider; don't be afraid to use strategies which protect an original design or product. This is not distrustful or counterproductive; it just lets you commit to a partnership without betting the farm. This is a trick used by shoe and clothing manufacturers when using offshore factories. That is, send over an incorrect sample for quoting purposes. If fakes show up on the market; they will be based off this sample. When the contracts are signed and the production setup is in its final stages; send the real version. 
5. AuditWhere the cost justifies; follow the lead of the accounting world and use an independent auditor to ensure your trade secrets are safe. If you are using an external provider; how do they store your data? Can their servers be hacked? Do they store all their client's information in the same place, running the risk that one of your files, or samples, is accidentally sent to one of your competitors? If the cost is justified; it is an avenue worth exploring. 6. Service Level AgreementsThe use of Service Level Agreements are a wholly under-rated tool in the outsourcing arena. At its simplest, a Service Level Agreements states how a service is to be performed and to what standard, what remedies the provider will undertake if the standard drops below a pre-determined level, and what recourse you have if the provider fails to remedy the situation. 7. Trademarks & PatentsWhen creating an original work or design; it is prudent to explore whatever protection is afforded through the registration of trademarks and patents. Consult a solicitor who specialises in intellectual property, and refer to IP Australia's website http://www.ipaustralia.gov.au/ for the latest on strategies for protecting your trade secrets. This is by no means an exhaustive list. What strategies do you employ to ensure your business' intellectual property and designs remain your own? 
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