Why are trade secrets are so important to a firm and how the

Why are trade secrets are so important to a firm, and how they may be protected using restrictive covenants and agreements not to compete? How would the firm protect trade secrets in a global market?

Solution

Trade secrets are important because they are intellectual property that contains the secrets of your organization, it could be the formula for your shampoo or the recepie to make your bevarage, if some one obtains that formula your company would be in danger because others may start making copies of your product.

When s trade secret is leaked the organization feaces the lose of money and also could lose the trust of his customers.

In order to protect trade secrets the organizations needs to first identify them and educate the employees on the importance of these secrets.

Organizations also security systems, limiting acces to certain rooms through electronic control, managing communication that constains sensitive information on the right maner and making employees sign a non disclouser form.

Emloyees also need training on how to avoid leaking the secrets, some accidents have happened where rivals have entered companies by sending an email and hacking computers