1. All employers must establish policies dealing with trade secrets, confidential information, and other rules of employee conduct to protect their assets.

2. Understand what constitutes a trade secret.

3. Understand what constitutes confidential information.

4. Customer lists that can be compiled from a telephone directory or other readily available source are generally not trade secrets.

5. Create a climate of confidentiality to protect your trade secrets.

6. Advise employees of the seriousness of the problem.

7. Display posters reminding workers of their obligations to protect confidential information and publish such journals, work rules and policy manuals.

8. Distribute memos that employees must sign on an annual basis which confirms that the employee acknowledges the type of information that is confidential and agrees not to convey such information to non-essential third parties.

9. In some states, it is a crime to steal trade secrets.

10. Federal law prohibits stolen information worth more than $5,000 that is transported across state lines.

11. Be extra careful that a terminated or parting employee does not leave with any valuable or potentially valuable materials (or copies) such as business-generated reports, letters, etc.

12. Utilize restrictive covenants in employment agreements whenever practicable. Such clauses can:

a. Restrict an ex-employee from working for a competitor of the former employer;

b. Restrict an ex-employee from starting a business or forming a venture with others that competes against the former employer;

c. Restrict an ex-employee from contacting or soliciting former or current customers or employees of the former employer;

d. Restrict an ex-employee from using confidential knowledge, trade secrets, customer lists and other privileged information learned while working for the former employer; and

e. Restrict an ex-employee from any of the above both in geographic and time limitations.

13. To be enforceable, be sure the restriction is reasonable in terms of geographic scope and time limitations.

14. If you desire to impose such clauses on current employees, an offer of additional monetary benefits increases the odds that such arrangements may be enforceable.

15. Establish effective exit procedures to learn who a departing employee will be working for.

16. Act quickly if problems develop -- consult a labor lawyer immediately to determine your rights and options where applicable.

17. To increase the chances that your company will prevail in trade secret litigation, it is advisable to send a cease and desist letter immediately to the ex-employee and his new company. This may enable you to obtain a preliminary injunction to immediately stop the ex-employee from competing against your interests provided it is proved that:

a. Trade secrets or confidential information is involved;

b. Substantial economic harm will ensue if the injunction is not granted;

c. Your company has a substantial chance of success at the eventual trial; and

d. Immediate relief is necessary via the injunction to protect your business.

18. If you sit on your rights and not act quickly when a problem is uncovered, the chances of success at the injunction or trial may decrease.