Monthly Archives: January 2012

Intellectual property (or “IP”) is the lifeblood of most businesses and the departure of a key employee, on good terms or bad, can stress even the best IP protection protocols. Key employees often have unlimited access to confidential company information and trade secrets, including client and prospect lists, parts and pricing lists, business protocols and procedures, and other proprietary information.  Ideally, preparation for the departure of key employees should begin long before they leave.

1. Listen! When an employee expresses dissatisfaction with his job, listen carefully.  Employees who are unhappy at work often will talk to co-workers and sometimes even upper management about their plans for the future.  Often times, these comments take the form of seemingly simple griping but other times there are nuggets of truth which reveal actual plans which may include the possibility of opening a competing business. 

2. Know your IP.  The first step in protecting IP is to know IP exists and what is most important to your business.  Any organization that does not know what information is most important to it cannot construct or implement proper safeguards. 

3. Implement reasonable security measures. Some of the most obvious preventive measures can be the most effective.  Locks on doors, encrypted passwords on computers and limited handling of confidential hardcopies are easy, cost-effective steps to take to protect the integrity of IP.  A good IT professional can establish and enforce protocols that will monitor the use of information, routinely store and back up information, and limit any destructive intent by a departing employee.

4. Don’t be fooled by ethical obligations.  Most industries follow ethical standards to protect sensitive client information such as credit card numbers, the identity of minors, etc.  However, those standards offer no protection to the unwary business and sometimes as even the most trusted employees succumb to temptations.

5. Know exactly what information your employees can access.  Even at the highest management level, someone must know what everyone in the organization can access through computers and other data collection systems.  This simple information allows management to control that access and evaluate attacks against its integrity.

6. Document as much as possible.  It is relatively unusual for a disgruntled employee to destroy or take vast quantities of sensitive data or information. However, there are almost always behaviors that begin to appear when an employee is expecting to leave. These signs should be documented and reported to management so that they can take appropriate action quickly.

7. At termination, lock down all access.  While obvious, it is important to change passwords and keys to locks, as well as seek the return of cell phones, laptops, pass cards, and parking permits, etc.  Cancellation of all memberships in industry organizations should be done as soon as possible. Soon-to-be former employees should not be allowed access to computer systems or hard copies of files.

8. Damage control.  Following termination, it is important to contact clients to inform them about the transition and to make it as seamless and painless as possible.  Revisions to the company website, updates to profiles such as LinkedIn or Facebook, and press releases to local and industry publications should also be considered. 

There is no magic wand to wave to prevent a key employee from abusing their access to IP.  However, a business with proper checks and balances can minimize any detrimental effect from the departure of a key employee.  The end of an employment relationship does not have to be the “end of times.”