Like whistle-blowing, trade secrets and conflicts of interest involve a delicate balancing of the rights and interests
Question:
Like whistle-blowing, trade secrets and conflicts of interest involve a delicate balancing of the rights and interests of employers and employees, as well as the public at large. As a matter of public policy, trade secrets are protected through the implementation of laws that encourage conformance to rules of commercial morality. Trade secret protection can take many forms—arguments for property rights, fair competition, and a duty of confidentiality. For example, ownership protection is necessary because disputes can arise when an employee claims rights to a product developed during the course of employment. Noncompete clauses are highly favored by employers, but they are often struck down by the courts as a matter of public policy. Employers typically make the argument that noncompete clauses are necessary to protect trade secrets; however, fair competition issues often result from noncompete employment contracts that are overly broad and place unreasonable restrictions on competition. In reference to confidentiality, it is imperative for trade secret protection. Conflict of interest disputes occurs when an employee breaches confidentiality and uses trade secret information to his/her advantage without permission from the employer.
In approx. 20 sentences, discuss the company impact that occurs when an employee breaches confidentiality with trade secret information.
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts