Headlines were made by the recent announcement that a former engineer for Dow Chemical will be sentenced to 5 years in prison for selling proprietary information (trade secrets) to the Chinese government and private parties in China. He was also ordered to pay more than $600,000 in fines and penalties. The total cost to Dow Chemical? Estimated at over $250 MILLION dollars.
Perhaps your company is not developing cutting edge polymer technology, and you think this isn't relevant to you. The polymer technology stolen from Dow Chemical was used in vinyl house siding and electrical insulation -- hardly James Bond-style technology.
The point is, if you're making money off of it, other people want it. Patents can protect you to a point, but Dow was protecting itself with trade secrets. That means you need to screen your employees, consultants, and independent contractors. You need to trust them. You also need to have your termination clauses reflect the seriousness of breaches of confidentiality and trade secret theft.
Even if you're not as big as Dow Chemical, espionage is an age-old way to avoid doing the creative work. Take precautions no matter your industry.
Perhaps your company is not developing cutting edge polymer technology, and you think this isn't relevant to you. The polymer technology stolen from Dow Chemical was used in vinyl house siding and electrical insulation -- hardly James Bond-style technology.
The point is, if you're making money off of it, other people want it. Patents can protect you to a point, but Dow was protecting itself with trade secrets. That means you need to screen your employees, consultants, and independent contractors. You need to trust them. You also need to have your termination clauses reflect the seriousness of breaches of confidentiality and trade secret theft.
Even if you're not as big as Dow Chemical, espionage is an age-old way to avoid doing the creative work. Take precautions no matter your industry.
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