The Tool Desk
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What makes a trade secret protection plan reasonable?
There is no universal checklist. The U.S. Patent and Trademark Office says reasonableness depends on the circumstances, including the information’s type and value, its importance to the business, and the company’s size and organizational complexity. The U.S. Department of Justice likewise frames safeguards around the information’s value and the risk of theft. The DOJ Justice Manual puts it plainly: “The extent of the security measures taken by the owner of the trade secret need not be absolute, but must be reasonable under the circumstances, depending on the facts of the specific case.” (DOJ Justice Manual § 1127; USPTO Trade Secret Intellectual Property Toolkit)
That makes security a combination of controls and documented business practice—not a product certification. The safeguards should fit the sensitivity of the information, how it is used, who needs it, and the consequences if it is exposed.
Start by identifying what must stay secret
Make an inventory of confidential information and map where it lives: paper files, employee computers, shared drives, cloud services, backups, removable media, and third-party systems. Record which roles need access and why. A classification scheme can help distinguish trade secrets from information that is merely internal or public.
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NIST calls for a data inventory in guidance for software used in a specific federal executive-order context. That is a useful technical reference, not a universal legal requirement for every business. The broader practical point is to know what information exists and where protections need to apply. (NIST security measures for EO-critical software)
Limit access to people who need it
Use least-privilege access: give employees only the files, systems, and permissions they need for their work. Use unique accounts rather than shared logins, protect administrator accounts, and review access periodically—especially when roles change or a project ends. Revoke access promptly when it is no longer needed.
For higher-risk accounts, consider multi-factor authentication (MFA), privileged access management, and phishing-resistant authentication where appropriate. NIST identifies verifier-impersonation-resistant MFA and privileged access management in its EO-critical software guidance; those examples are not a mandate for every organization. A hardware security key is one possible MFA implementation, but check that it works with the services and devices in use. (NIST security measures for EO-critical software)
Protect files in storage and in transit
Consider encrypting sensitive information on devices and storage systems, and encrypting communications when information moves between users, services, or locations. Encryption reduces the usefulness of data if a device or storage medium is lost or intercepted, but it does not replace access controls. Protect encryption keys and ensure authorized people can still access the information they need.
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The DOJ’s IP Victims’ Guide asks whether electronically stored trade secrets were encrypted; NIST’s EO-critical software measures include encryption at rest and encrypted communications in transit. Apply protections in a way that fits your systems and any applicable standards. (DOJ IP Victims’ Guide; NIST security measures for EO-critical software)
Secure physical records, devices, and removable media
Digital controls do not protect a printed formula left in an unlocked room or a sensitive file copied to an unmanaged USB drive. Use building, room, cabinet, or safe access restrictions for physical materials as appropriate. Mark confidential documents, control copying when warranted, and use sign-in or sign-out procedures for records or media that need tracking.
Set rules for removable storage and unapproved peripherals, and apply them consistently. A lockable document safe can help protect paper records or removable materials, but it is only one layer of a broader protection plan. The USPTO lists locked rooms and safes as examples of physical safeguards, while the DOJ checklist addresses storage, document markings, access records, and peripherals. (USPTO Trade Secret Intellectual Property Toolkit; DOJ IP Victims’ Guide)
Make confidentiality expectations visible
Employees and outside recipients should know which information is confidential, how to handle it, and what obligations continue after access ends. Use confidentiality policies, suitable agreements, regular training, and clear document markings. For contractors, vendors, licensees, or other partners, disclose only what they need and put appropriate confidentiality protections in place before sharing.
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Agreements and training support a protection program; they do not substitute for controlling access or handling information securely. The USPTO and DOJ both identify agreements, employee reminders, training, and third-party protections as relevant practices. (USPTO Trade Secret Intellectual Property Toolkit; DOJ IP Victims’ Guide)
Log activity, prepare for incidents, and test recovery
Keep appropriate records of access to important systems and files, and review activity when the sensitivity or risk warrants it. Logs can help identify unusual access and support an investigation, but they are useful only if they are retained, protected, and reviewed in a way that fits the organization.
Back up critical information and periodically test restoration. A backup that cannot be recovered when needed does not provide reliable recovery. NIST’s EO-critical software measures include backups, restoration exercises, and recovery readiness; NIST SP 800-53 Rev. 5 offers a flexible catalog of controls across areas such as access, auditing, incident response, media, physical security, and personnel. (NIST security measures for EO-critical software; NIST SP 800-53 Rev. 5)
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Handle employee departures and changing access
When an employee leaves or changes roles, promptly disable or adjust accounts, recover company devices and physical access items, and follow a consistent process for company files and copies. Remind departing employees of continuing confidentiality obligations and retrieve or destroy copies in their possession where appropriate. An exit discussion can reinforce expectations and provide a chance to identify unresolved access or data-handling issues. The USPTO toolkit and DOJ guide both include departure-related steps among their examples. (USPTO Trade Secret Intellectual Property Toolkit; DOJ IP Victims’ Guide)
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Choose controls by risk, coverage, and operational fit
There is no evidence-based ranking of particular vendors or products in these government materials. Compare control approaches by the risks they address and whether your organization can operate them consistently:
- Risk addressed: Does the control reduce insider misuse, account compromise, device loss, accidental sharing, or network intrusion?
- Coverage: Which files, systems, users, locations, and outside recipients are included—and which are not?
- Access governance: Can permissions be limited, reviewed, and revoked promptly?
- Evidence and response: Are relevant activities logged, and can the organization investigate a suspected incident?
- Recovery: Can the protected information be restored after loss or disruption?
- Fit and operating burden: Does the approach suit the company’s size, workflows, technical environment, and the information’s value?
These questions reflect the DOJ’s risk-oriented checklist and NIST’s flexible, customizable approach to security controls. A control that is technically capable but poorly maintained may be less useful than a simpler measure that people reliably follow. (DOJ Justice Manual § 1127; NIST SP 800-53 Rev. 5)
Revisit safeguards as circumstances change
Review the inventory, access list, and handling rules when a secret’s value changes, a project ends, a system moves, a new partner receives information, or a security incident occurs. A protection plan should evolve with the information and the risks around it rather than remain a one-time setup. Trade secret standards are fact-specific; U.S. businesses should coordinate legal and security decisions for their own circumstances.
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