Economic espionage is a crime that affects both corporate and national interest in protecting intellectual property. However, there is a fundamental misunderstanding of the inherent value of trade secrets within the context of risk transfer. Many companies do little to protect their trade secrets. They fail to ask themselves “What information would I not like to have in the hands of my competitors?” If a company does not protect its trade secrets, neither will a court. Companies should craft specific physical, information technology and other security measures and policies to protect trade secrets—just as they do with non-disclosure agreements. While there is tremendous interest from all industries in the loss of value associated with an electronic breach of trade secrets—there is very little insurance coverage currently available. With the well-publicized cases of Google in China, Northrop Grumman, Wikileaks and others in the past three years, the understanding of need to address this risk through insurance is rising and such coverage will continue to evolve.
|This post was part of our SPOTLIGHT ON CYBER: Is Any Industry Safe?, published June 25, 2013. The feature also included these other risks:|