Trade Secrets and How to Protect Them

Trade Secrets and How to Protect Them

A trade secret is a type of intellectual property distinguished from three others, namely copyrights, trademarks, and patents.

Advantages of a Trade Secret

  1. No time limit like patents and copyrights
  2. No requirement for public disclosure
  3. No requirement to file with the government

Trade secrets bring value to the company because they are not known to others, particularly competitors, in your market place. To maintain trade secrets, you must make reasonable efforts to protect them. You should have a program for maintaining secrecy, including:

  1. A provision in your employee handbook requiring employees to refrain from disclosing trade secrets
  2. Physical access controls
  3. Passwords
  4. Sign-in sheets
  5. Confidentiality rubber stamps
  6. Non-disclosure agreements with staff and employees as well as potential joint business ventures

Trade secrets can include:

Technical or nontechnical data

Formulas

Compilations

Programs

Devices

Drawings

Processes

Financial data

Price lists

Business and marketing plans

Software codes

Manufacturing techniques and other methods

Customer or prospective customer lists

 

The last one is a huge issue, especially when employees leave with a list of customers with the intention to set up a competing practice.

Customer lists can’t be considered trade secrets if they are simply copied from the yellow pages. They must be developed. They often evolve over time and include critical info, e.g., the contact person, the nature of the company, etc.

Disparate elements — you can have various formulas, none of which is a trade secret in itself, but when brought together, they can be part of a formula that does constitute a trade secret.

The economic value of a trade secret can be actual or potential. The Google algorithm is an example of what was at one time a potential trade secret. The algorithm was developed by students while in college. Although they had developed a method to search the internet, they had no idea at that time how to turn it into a business. Had someone had stolen their algorithm, it would have been protected as a potentially valuable trade secret.

Governing Law:

Historically, trade secrets were the subject of common law, which looks at:

  1. Extent known outside the company or by employees. The more widely known, the less likely it is to be a trade secret.
  2. Measures taken to guard secrecy
  3. Value to company and competitors
  4. Time, effort, money, and difficulty to develop. However, courts today are giving less weight to these if the idea is a good one and conveyed in secrecy.

Uniform Trade Secrets Act — Adopted by 47 states. Misappropriation occurs when a trade secret is acquired by improper means or comes into your possession and you knew it was a secret, e.g., information provided by a new employee.

Federal Economic Espionage Act — U.S can prosecute as a criminal act. The concern is the outflow of business information.

Some famous trade secrets:

Formula for Coca Cola

Recipe for Kentucky Fried Chicken

Formula for Smith’s Cough Drops

Formula for WD-40

Google algorithm

Remedies:

Injunction — For example, when an employee leaves the company with valuable trade secrets and joins a competitor, the company may be able to obtain an injunction to prevent him or her from disclosing them.

Compensatory damages — These are actual damages to the complaining party. Liquidated damages may be provided for in the non-disclosure agreement.

Punitive damages — If there is willful misappropriation, there may be a doubling or tripling of the amount of actual damages.

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You Must Give Up These 5 Things to Be Debt Free

No matter who you are, almost everyone carries some debt. According to some recent statistics from ValuePenguin.com, the total U.S. consumer debt is $3.4 trillion. Additionally, nearly 40 percent of all American households have some level of credit card debt, while the average household in the country has debt of $5,700.

Essentially, the country runs on debt. Of course, no one wants to get into debt, but once there, most people have a very difficult time climbing out of that dark hole. The good news is, it’s not impossible. It’s not easy, either, but if you’re willing to make some changes, you can live debt-free. If you’re ready to give some things up then read on.

Everyone loves to eat out, but if you want to get rid of your debt you have to start eating at home. The reason is obvious. The more of your budget you spend on eating out, the less you will have to put towards your debt. In fact, it’s likely your debt will increase.

Stop being a social media junkie. On the surface this might not make a lot of sense, but if you consider it carefully, it’s sound advice. People who constantly check up on their friends on social media tend to want to keep up with everything that’s going on, including having the latest trending items that everyone is talking about. That means more money out the door and more debt in your pocket.

You have to be honest with yourself, which means you can’t live in denial anymore. Admit you have a problem with debt and push forward to fix it.

While it’s good to establish other financial goals, if you’re in debt it is very difficult to achieve such goals. Thus, it’s often better to give up your other financial goals in order to first pay off your debt. When your debt is gone you can start focusing on those other dreams.

The bottom line is that you must be willing to sacrifice if you want to get out of the red and live debt-free.

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Give These New Hobbies a Try in 2017 

Are you looking for something new to try this year? You better get going because the year is practically half over. If you’re tired of all the old, run-of-the-mill hobbies and you want a new adventure to pass some time, then there are several options you should give a try. Make some time to try more than one and see which one you like best. You might end up finding a new hobby that you will enjoy for many years to come.

If you like to get crafty then give embroidery a try. You can unleash your creative side and come up with some new décor for your home at the same time. Along those same lines, why not try cross-stitching as well? Another hobby you might like if you enjoying being crafty is making paper flowers. They won’t rot and they add more beauty to the world.

Have you ever wanted to learn an instrument? Why not give the ukulele a try? It’s usually much easier to learn than a guitar and it will come in handy on your next trip to an island paradise or on a rainy day when you’re stuck inside.

Yoga is another great new hobby to experience. Learn to master the practice of this ancient form of meditation and exercise. You’ll feel better mentally, emotionally, and physically!

Perhaps you like art but don’t give it much time. You could always take an art class, or just make more time to visit art galleries and museums to appreciate some of the finer things in life. There are endless new hobbies to try this year. Pick something and see if you can discover your new favorite pastime!

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Simple Ways to Build a Better Tax Plan

Does it seem possible that more than two months have already passed since the 2017 tax season ended? That means the 2018 tax season is not that far away, and now is a good time to make your tax plan for this year’s return.

Tax plans come in all shapes and sizes because no two taxpayers have the exact same situation. However, there are a few common tips that can help any taxpayer prepare his or her next tax return, especially if they want to save a little more on taxes.

  • Tax Harvesting – We’ve discussed tax harvesting before, but it never hurts to repeat sound advice. This is a great way to reduce your tax hit by selling off investments that have a loss. This will help offset any gains you have and ease your tax burden.
  • IRA Contributions – While you can wait all the way util April of next year to contribute to your IRA, you don’t have to. Plus, whatever you add to your Roth IRA will be tax-free income when it comes time to withdraw it.
  • Maximize Long-Term Gains – If you happen to be in the 15 percent tax bracket, you get to enjoy your long-term investment gains tax-free. Therefore, take the time to study and estimate your future investment taxes and look for chances to save each year.

These are just a few of the tips you can implement in your 2107 tax plan, or any other year, to help get prepared and save some money. Please feel free to speak with our tax experts at GROCO for more help.

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Will One of Trump’s Top Tax Breaks Get the Axe?

As the new president and his administration continue to tout their big plans for a major tax overhaul in the U.S., it remains to be seen if the proposals will get passed in the House and Senate. While both branches of government are all for tax code reform, there are still differences that must be overcome. For example, House Republicans are currently weighing the possibility of killing one of President Trumps’ personal favorite tax deductions.

This tax provision has been around for hundreds of years and it has been a huge boost to the president’s real estate fortune. However, it could become one of the biggest tax fights in Washington in the coming months. According to reports, in order to offset the proposed reduction in the nation’s corporate tax rate, the House would like to use the $1 trillion that would be raised by ending a deduction for businesses’ interest expenses.

While doing so would help fund the government and its programs, there are several industries that are already clamoring for the deduction to be retained as is, including private equity companies, real estate moguls, and even farmers – all of which claim that they have to borrow money in order to operate. They fear huge tax increases if the deduction is removed.

So far, Republicans are divided on the issue, while the president himself has long supported the deduction for obvious reasons. His Treasury Secretary has said that they prefer to keep it in place but that all options are still open. Stay tuned, because this could end up being a big fight in the nation’s capitol.

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The Best Dining Experiences Around the Globe

Looking for some of the best dining experiences from around the world? Obviously, this list will not include any of your standard chain restaurants that serve burgers and chicken wings, not that there’s anything wrong with those options. However, for those with a more distinguished food palate and the ability to dine in locations around the globe, these are some of the best restaurants in the world. You can try any of them for what promises to be an extraordinary experience.

According to this year’s list of the World’s 50 Best Restaurants, published by William Reed Business Media, these are the top 10 spots along with their ranking last year in parenthesis. Click here to see the entire list.

  1. Eleven Madison Park, New York (3)
  2. OsteriaFrancescana, Modena, Italy (1)
  3. El Celler de Can Roca, Girona, Spain (2)
  4. Mirazur, Menton, France (6)
  5. Central, Lima (4)
  6. AsadorEtxebarri, Axpe, Spain (10)
  7. Gaggan, Bangkok (23)
  8. Maido, Lima (13)
  9. Mugaritz, San Sebastian, Spain (7)
  10. Steirereck, Vienna (9)

If you like to mix your passion for food with a passion for travel, then get out and explore some of these amazing places located all over the world. Be sure to call ahead though, because they don’t take walk-ins.

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Accountability in Four Easy Steps

Source: Partner Insights

The following includes excerpts, reproduced with permission, from an article by Marty Stanley, president of Dynamic Dialog, Inc.

Accountability hasn’t been considered the “next big idea” because it’s not “flashy.” There are no “bragging rights” about implementing an accountability process. After all, accountability means people would need to change, rather than a system or process that needs to change. And who wants to be accountable if it means having to personally change?

On the other hand we’ve seen what happens when there’s no accountability for leading people or processes: The dot-com bust, Enron, Katrina, FEMA…Scandals everywhere: Politics, religion, sports…Bernie Madoff, bailouts and industries collapsing…Product recalls, contaminated foods, greed, waste and excess.

Here are four easy steps to holding people accountable:

  1. Use job descriptions as the basis for hiring or promoting people into a position.
  2. Share the job description with incumbents so they know their accountabilities and let them know this will be used for training, coaching, and performance feedback.
  3. Have objective ways to measure and monitor performance and communicate those methods to the people performing the jobs. Follow through by providing feedback about performance.
  4. Provide training and coaching opportunities to enhance performance.
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Is There Still Time to File My 2016 Taxes?

The tax deadline this year has obviously passed, and most people have pushed the subject of taxes to the furthest part of their minds. However, for those who still haven’t filed a return, the tax season continues. That begs the question: is there still time to file your 2016 taxes? The answer is definitely yes. For those who filed for an extension, this comes as no surprise. However, for those who missed the deadline without filing for an extension, this may come as a surprise.

First off, if you filed for an extension, then you know you have six more months (until October 18) to file your tax return. However, you shouldn’t wait to file because even though that extension allows you more time, it does not give you more time to pay off your tax bill. Therefore, if you owe money to the IRS, you will be paying interest on the unpaid amount every month it is late.

Furthermore, whether you filed an extension or not, you should still file your return as soon as possible. The penalty for not filing is much greater than it is for filing late. Plus, when you don’t file, you not only get charged with additional interest, but the IRS also charges penalties, which are much higher than the interest rates.

One more thing to keep in mind is if you have a legitimate excuse for being late, the IRS may pardon the penalties, although you will still be responsible for any interest accrued. However, it must be a good excuse, and not having sufficient funds is not considered a good excuse.

 

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Top Careers for Working Parents

Let’s face it, being a parent is a tough job. Long hours, no holidays or vacation days, and the pay is anything but spectacular. Of course, parenting has some great rewards, and most parents wouldn’t trade those intangible benefits for anything. However, the reality is most parents struggle to figure out how to be good full-time parents while fitting in a full-time job. Often, it’s the parenting duties that get left on the back burner.

Parents have to support their families, but hopefully not at the cost of never being there for their families. With that backdrop in mind, which careers are the best suited for working parents? Keep in mind that these jobs might not always pay the best, but they do offer more flexibility, which enables parents to be there when their kids need them most.

These positions include call center representatives, school bus drivers, teacher’s aids, tax accountants, and web writers. All of these positions are typically quite flexible. On the other hand, some of the higher paying jobs that are good for working parents include dietitian, physician assistant, public relations specialist, speech-language pathologist, and web developer. These not only allow for greater flexibility, but they also offer a better quality of life.

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Are There Any Tax Benefits Coming to the Middle Class?

Now that the president and his administration have announced their plans for an overhaul to our nation’s tax system and code, most taxpayers are wondering how it will affect them. While there are many reports that the nation’s wealthiest will get even wealthier, thanks to the tax breaks laid out in the plan, the administration continues to tout the benefits that will be coming to the middle class.

Is it all political rhetoric or do the middle class really have something to look forward to? Generally, it looks like the new proposals could lead to lower tax bills for many people. However, at the same time, many of the most popular tax deductions could also be cut, which might not sit well with a lot of taxpayers.

On the plus side, the president would like to raise the standard deduction for both single filers, as well as joint filers, which would lead to lower tax bills. It would also mean an easier tax return process because most people would not have to itemize their deductions. The downside is that many tax deductions people count on every year would be eliminated, except the mortgage interest deduction and the charitable contributions deduction.

The plan also calls for fewer tax brackets, which would likely lead to a lower tax bill for most taxpayers, but not all. The new tax plan also calls for greater tax breaks for parents, especially those who pay for childcare, as well as possibly increasing the Child and Dependent Care Tax Credit. Business owners would also see lower tax rates under the plan, which would be a huge boost to small businesses.

 

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