Playing Fair: Protect Trade Secrets From Business Partners

Collaborating with other companies on new products, services, and promotions can help businesses boost revenue and increase their visibility, but one downside of such projects is the possibility of exposing trade secrets to business partners.

Given this threat, it is important to have non-disclosure agreements in place with any business partner before any trade secret information is shared with anyone outside your company. Most companies do not want to steal other companies' trade secrets, and open communication with competitors can also help both sides quickly resolve situations involving misappropriation, possibly avoiding costly and drawn-out litigation. In a famous example that ended in convictions for three co-conspirators, PepsiCo, Inc. reached out to The Coca-Cola Co. and passed along a letter they received that offered information about Coca-Cola's confidential drink formulas. Coca-Cola, in turn, contacted the Federal Bureau of Investigation, which conducted