CREATe.org just published a white paper highlighting the escalated risk of trade secret theft to multinational corporations (MNCs) operating in global markets. Though analysts generally rely on markets to value the behemoth MNCs, awareness of this issue is important to all valuators, as the onus of protecting trade secrets really falls on individual companies.
What can a company do?
- Has the company inventoried and valued their trade secrets?
- If operating in global markets, has the company developed procedures to undertake appropriate pre-contractual due diligence?
- Has company counsel incorporated appropriate “contractual protections, backed by enforceable audit rights and penalties…”?
- Is the company utilizing operational and security measures commensurate with the supply chain risk assumed? And, critically,
- Are procedures in place to take appropriate action to insulate the business from harm after a business relationship has ended?