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www.arnstein.com1
Protect Your ConfdentialInormation and MaintainYour Competitive Advantage
 Thadord A. Felton
ARNSTEIN & LEHR LLP120 SOUTH RIVERSIDE PLAZA | SUITE 1200CHICAGO, ILLINOIS 60606P 312.876.6934 | F 312.876.0288taelton@arnstein.com
 T
hough you may not have “secret recipes” or cola drinks or ried chicken, your company undoubtedlyhas some process or inormation that you believe gives you an advantage over your competitors. Thisconfdential inormation may take many orms such as a customer list that you have built through the yearsat considerable expense and eort; a product design that your competitors do not have; or a pricing ormulathat generates greater profts. Importantly, i you take certain steps to keep this inormation confdential,the law will help you protect it rom becoming public inormation and getting into the hands o yourcompetitors. On the other hand, i you do not take the correct steps your competitors are ree to gain accessto your inormation and use that inormation to their advantage. This article recommends key steps that you and your company can take to protect your confdentialinormation and the competitive advantage it gives you. The steps range rom the basic to the complex.However, rom a legal perspective all o these steps are recognized as necessary in order to protect theconfdentiality o your inormation.
Identiy Your Confdential Inormation.
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Beore you can protect your confdential inormation, orexpect someone else not to disclose it, you must be able to identiy what the inormation is that youconsider to be confdential. The more specifc you are in identiying your confdential inormation, thebetter chance you have o protecting it under the law.
Be Realistic In Identiying Your Confdential Inormation.
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Obviously not all inormation can beclassifed as confdential. Generally, confdential inormation is inormation that is known only to you andis not publically available. Narrowly defning your confdential inormation allows you to support yourdetermination that the inormation is confdential.
Make Sure Your Employees Understand What Inormation Is Confdential.
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Once you have identifedwhat inormation you believe to be confdential, it is essential that your employees understand whatinormation is considered by you to be confdential. You do not have to tell them the precise nature o the confdential inormation, but you need to tell them enough so that they know that the particularinormation is confdential and not to disclose it to others. For example, you may tell your employeesthat your pricing ormula or Product X is confdential, without telling them the pricing ormula.
Include A Confdentiality Statement In Your Employee Handbook.
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An Employee Handbook setsorth, among other things, an employer’s expectation o its employees. Your Employee Handbook shouldidentiy what you consider to be confdential and inorm your employee o his/her obligation not to
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