How to Protect Trade Secrets in Cross-Border Business Deals

Expanding your business into global markets is an exciting move, full of potential, promise, and profit. But it also comes with a specific set of risks that are often overlooked in the excitement, especially when it comes to safeguarding what might be your business’s most valuable asset: its trade secrets. Whether you’re sharing proprietary technology with a foreign manufacturer or discussing product formulas with overseas distributors, every cross-border deal demands careful attention to intellectual property protection. Continue reading and contact Lemler IP to learn from a knowledgeable New Orleans, Louisiana intellectual property lawyer about how to keep your trade secrets safe while doing cross-border business deals.

What Makes Trade Secrets So Vulnerable in Cross-Border Business Deals?

Trade secrets are, by their very nature, confidential. They include things like client lists, manufacturing processes, algorithms, pricing structures, and more–anything that gives your business a competitive edge and isn’t generally known to the public. The challenge with cross-border deals is that laws protecting these assets vary dramatically from country to country.

In the United States, trade secrets are protected under both state law (like the Louisiana Uniform Trade Secrets Act) and federal law (thanks to the Defend Trade Secrets Act). But when you enter into an agreement with a foreign entity, your legal protections are only as strong as that country’s laws–or as strong as the contracts you’ve put in place.

Some countries have weaker enforcement mechanisms, unclear definitions of trade secrets, or even no specific trade secret laws at all. That means your proprietary information could be at risk the moment it’s shared unless you’ve taken the right steps beforehand.

What Legal Tools Can You Use to Protect Trade Secrets Internationally?

The cornerstone of trade secret protection in international business is a well-drafted contract. It’s not just about having a non-disclosure agreement (NDA); it’s about having the right NDA, carefully tailored to address international legal nuances. Your agreement should specify the jurisdiction in which any disputes will be resolved and include robust confidentiality clauses that are enforceable in the country of your business partner.

Beyond NDAs, companies should consider implementing non-compete and non-use clauses, especially in industries where competitors may try to reverse-engineer or misuse information after a deal ends. Additionally, you can use technology and process controls to minimize exposure. For instance, limit access to sensitive data to only those who absolutely need it, and require encryption and password protection when information is shared.

It’s also a smart move to consult an experienced intellectual property attorney. An attorney can help you craft strategies that hold up in global markets while ensuring compliance with U.S. standards.

Can You Take Action If Your Trade Secrets Are Misused Overseas?

Yes, but it’s complicated. If your trade secrets are stolen or misused in another country, your ability to take legal action depends heavily on the terms of your contract and the laws of that country. International litigation can be expensive and slow-moving without a knowledgeable legal partner.

That said, prevention is always cheaper and more effective than litigation. If you believe your trade secrets are at risk in an international deal, or if you’ve already encountered misuse, it’s crucial to act fast. A skilled intellectual property lawyer can evaluate your options, which may include arbitration, civil suits, or even criminal complaints, depending on the jurisdiction.