MiMfg Magazine March 2018 | Page 12

12 MiMfg Magazine March 2018 “ immediate action is required. Unfortunately, once a theft has occurred, it can often be too late for anything more than legal action. “It is difficult to ‘put the cat back into the bag’ once a trade secret is publicly disclosed or revealed; therefore, when a company learns that a trade secret has been misappropriated, it should seek to limit such disclosure by seeking an injunction or TRO to prevent further dissemination (if possible),” explained Thomas J. Appledorn, a partner with Honigman Miller Schwartz & Cohn LLP. “Unfortu- nately, there are times where it is just too late, and money damages may be the only remedy, even though, all too often, money damages simply cannot make the aggrieved party whole.” During the MFG Law Summit, hosted by MMA in February, the Honigman team suggested some reasonable measures for manufacturers seeking to protect confidential information, including: • Requiring all visitors and other information recipients sign a confidentiality agreement • Maintaining a visitor log-in of all third parties who enter and exit a place where confidential information is kept, or confidential processes, are utilized • Keeping written trade secret disclosures in a locked location • Limiting access to computer files containing trade secret disclosures Get More! Bookmark these resources: • Michigan Intellectual Property Law Association (www.mipla.org) • United States Patent and Trademark Office (www.uspto.gov) • World Intellectual Property Organization (www.wipo.int) Most manufacturers either know someone personally or have heard stories of companies failing to bounce back after the loss of intellectual property. While today’s employer has access to new technology and new opportunities, manufacturers also face security threats their predecessors never had to imagine. ” — Chuck Hadden, MMA Many legal professionals are proficient in IP litigation and can assist victimized manufacturers. Civil recourse through state and federal court can result in cease and desist orders and payment of monetary damages. While the fees resulting from such cases are often paid by the party responsible for the theft, there is no fixing the time spent preparing or litigating the grievance. On the other hand, copyright theft does not require such a quick reaction as it is not confidential. While still important, the speed required to restrict further use of your copyright IP is often less. “To prove copyright infringement, one must show (i) access (i.e., that the alleged infringer had access to the underlying work), and (ii) substantial similarity (i.e., that the alleged infringing work is substantially similar to the copyrighted work),” explained Appledorn. “If a court is satisfied that these elements are met, it may (i) issue an injunction to prevent the infringer from using the copyrighted work moving forward, or (ii) award money damages to the copyright owner.” Whether you require a speedy resolution to confidential trade secrets or simply want another party to stop using your IP, efforts that result in litigation are all reactionary and allow for solutions after your IP has been stolen. To save time, money, resources and your reputation, a proactive response is almost always preferred. Creating the Correct Culture to Protect IP “Manufacturers should begin by understanding your risk profile, what IP is at risk, what is the economic value of the IP assets, what is the probability of loss, and how much of that economic value loss are you willing to tolerate,” advised Farhat. “This thought process should lead to quantifiable risk tolerance and in some cases risk appetite that can then guide the investment decisions needed safeguard IP.” You can begin developing effective IP policies through employee education. All employees should receive a copy of the company’s intellectual property policy and indicate their understanding of the policy. Employers may also ask new hires to sign an assignment agreement assigning any IP developed during the course of employment to the proper source. “When an employee is hired, he or she should be required to sign a nondisclosure agreement barring the sharing of any of the company’s confidential information during and after employment with the company,” said Appledorn. “You don’t want an employee leaving the company and taking the customer list in order to start a competing firm. The nondisclosure agreement can be incorporated into a general employment agreement.” Manufacturers should regularly check their operations to identify