Protecting Confidential Information and Trade Secrets

By Chris Larus, David Prange, and Rajin Olson

A noncompete agreement is one of several tools that businesses may use to prevent the unauthorized dissemination of confidential and trade secret information to competitors. In recent months, however, the Federal Trade Commission has proposed a new rule to ban noncompetition clauses, reasoning that such limitations restrict worker freedoms and harm competition. Anticipating that this proposed rule will be put into effect, the change provides businesses a good opportunity to assess their protection strategies employed for company trade secret and confidential information.