In an era where ‘Shadow AI’ proliferates across organisations worldwide, companies are faced with new challenges in protecting their trade secrets. At the International Trademark Association's (INTA) 2024 Annual Meeting in Atlanta, GA, a panel of experts from various industries discussed how brands are adapting their trade secret strategies to navigate this evolving landscape.
Yoo-Sun Park, senior managing counsel at Coca-Cola, shared insights into how the company manages its trade secret protection programme. The Coca-Cola recipe, perhaps the world's most famous trade secret, remains tightly guarded. Park emphasised that the company's strategy revolves around training employees and maintaining their contracts, ensuring that everyone understands the value of trade secrets and their role in protecting them.
Coca-Cola uses both closed-loop and open-loop AI tools, but only its own in-house AI tools are used for trade secrets information. The company has strict rules prohibiting the input of personal and confidential information into platforms like ChatGPT. A cross-functional team comprising legal, IT, and cybersecurity professionals maintains these policies.
Panellists from GE Aerospace, Weir Group, and Corsearch shared their experiences and best practices for protecting trade secrets in the age of AI. Key takeaways include:
1. Implement comprehensive training and education programmes for employees on the use of AI and protecting company secrets.
2. Link the impact of financial performance to the need to safeguard secrets within the company. Money talks.
3. Ensure AI language around trade secrets is acknowledged in all policies and procedures for onboarding employees and vendors.
4. Conduct audits on vendors to ensure compliance with data usage and AI policies.
5. Classify trade secrets based on their importance and apply appropriate protective measures.
Diane Fiddle, global chief legal officer, privacy and compliance officer at Corsearch, stressed the need for proactive measures to protect proprietary information, competitive advantage, and trade secrets.
Another potential hurdle is the US Federal Trade Commission's (FTC) proposed ban on non-compete clauses for senior executives, set to take effect in September 2024. Megan Carpenter, dean of the University of New Hampshire Franklin Pierce School of Law, advised companies to identify and define their senior executives and have non-compete agreements in place before the ban takes effect.
As AI flourishes and flowers, companies must adapt their trade secret protection strategies to safeguard their most valuable assets.