In the wake of the Federal Trade Commission’s (FTC) recent approval of a rule prohibiting noncompetition agreements, legal professionals across corporate America are being urged to swiftly reconsider their strategies for safeguarding trade secrets, confidential information, and other forms of intellectual property.
According to a recent article by Thomas Duston, a partner at Marshall Gerstein, while the FTC’s rule is currently being challenged by various groups, companies should not wait before implementing alternative measures to ensure the protection of their intellectual property. Read the article here.
Noncompetition agreements have long been a cornerstone of business practice, preventing departing employees from taking proprietary information to competitors. Such agreements have provided companies with a level of security, protecting intellectual property that is, ultimately, vital to their competitive advantage.
However, in the face of the FTC’s recent rule, Duston suggests that companies should begin looking for new ways to protect their valuable trade secrets and other forms of intellectual property. Among the strategies, companies could consider increased use of other contractual measures, training and education for employees regarding the handling of sensitive information, and possibly more intensive exit interviews.
Adjusting to this new legal landscape may require some initial investment, but for businesses seeking to protect their prized assets, developing robust systems to safeguard intellectual property should remain a top priority.