How non-disclosures can protect your business secrets

For many businesses, it is their trade secrets which provide them with an added edge over their rivals. Information, processes and plans can help them to gain an advantage and the unauthorised disclosure to third parties can be problematic and damaging. Here we will explain how Non-Disclosure Agreements (NDA’s) can help in protecting these types of information from dissemination by third parties.

What are trade secrets?

From the complex algorithms that Google use to order search results to the secret ingredients used in Kentucky Fried Chicken, trade secrets give businesses an advantage that requires protection. Trade secrets could include specific methods of working or production, equipment that is used, ingredients, inventions, algorithms and formula as well as customer lists and other types of information. Trade secrets are defined under law as information that is “secret in the sense that it is not generally known among or readily accessible to persons within the circles that normally deal with this kind of information”, “has commercial value because it is secret” and “has been subject to reasonable steps under the circumstances, by the person lawfully in control of the information, to keep it a secret”.

The importance of responsible data handling for businesses

There have been numerous cases in recent years where businesses and organisations have failed in their duties under the Data Protection Act (1998). Under the law, organisations must do all they can to safely store, maintain and correctly dispose of sensitive information. Failing to do so can leave you open to fines of up to £500,000 and can significantly damage your reputation. Take Japanese electronic gaming manufacturer PlayStation who were handed a fine of £250,000 by the ICO when a hack into their online network leaked the user logins and credit card details of their customers. So, with these dangers in mind what guidelines should businesses follow for storing, accessing and disposing of confidential data?

6 ways to protect business information in the workplace

One of the most challenging prospects facing businesses in the UK today is how they can protect their confidential information, trade secrets and contacts, all of which are at threat from competitors, rogue employees and hackers. Here are 10 suggestions to better protect key information.

#1 – Background checks

Digging into the history of hiring candidates not only gives you a good indication of their competence for a particular role but it can also give you an insight into their honesty and integrity. While a criminal record may make you question whether or not they are the right fit for your businesses there are other red flags too. Lying about qualifications or work history and unaccounted gaps in their CV may also be red flags.

Why business owners should consider prenuptial agreements

Divorce has an impact on almost every area of your life and your business interests are rarely immune to that. When it comes to making a settlement with your spouse, you may be forced to give up as much as 50% of your wealth, and depending on the nature of your business this could include your business assets. However, increasingly pre-nuptial and post nuptial agreements are being recognised by the courts and taken into account when deciding upon financial settlements and could allow business owners to protect their companies from the impact of a divorce.

Why it’s important to be honest in divorce proceedings

When a marriage breaks down and is headed for divorce, both parties are encouraged to be fair and honest with each other regarding their finances. This allows for the court to reach a settlement which is reasonable. There is a temptation for spouses to misdirect their partner and the courts over the value of their assets, but as two recent cases show this is rarely a good idea.

Sharland and Gohil

An example of the importance of being honest about your finances is the case of Sharland and Gohil. These two high-profile cases involved divorce claims which were brought back to court on the basis that finances were deliberately concealed and the court misled.

Do I need to give my employee a contract?

In the UK it is a legal requirement that if someone is working with you for longer than two months that you provide them with a written statement of their terms and conditions of employment. While this is not an employment contract, it does include lots of information about the working relationship such as payment, shift patterns, working location and holiday entitlement.

A written contract expands on these key points and tailors them towards your business needs, providing you with security and recourse should things go wrong. So it is a smart decision for businesses to provide their employees with a written contract.

How to limit the damage to your business from divorce by planning ahead

One of the biggest mistakes that you can make as a business owner is to not give your company adequate protection against a marital breakdown. Business entrepreneurs often put in place contingency plans for a number of different scenarios from insurance for fire and disasters to company policies which prevent data theft and cyber attacks. Why then do so few businesses prepare for what will happen to their business if a business owner’s marriage breaks down?

Divorcing when you own a business together

The breakdown of a marriage is often difficult enough and there are lots of decisions to make, but throwing a business into the mix can make things all the more difficult, especially when you started the company together or share an interest in it.

According to figures from the Institute of Family Business, there are more than 3 million family businesses that currently operate in the UK. Family businesses tend to operate on mutual trust and all too often overlook the importance of putting pre-emptive measures in place like pre-nuptial agreements and post-nuptial agreements. These types of measures can help to prevent putting your business at risk further down the line if problems arise and a marriage breaks down.

Why every business partnership should have a deed in place

If you are thinking about entering into a business partnership then it is incredibly important that you set out an agreement that outlines your duties and obligations to each of the partners and to the partnership as a whole. Even when working with friends and family there is the opportunity for disagreement and especially when there is a lack of clarity over how the business operates. Drafting a partnership agreement at an early stage and regularly updating it to reflect changes in the partnership can help avoid expensive buyouts and headaches further down the line.

Choosing a legal structure for your business

One of the most important decisions you have to make when setting up a company is the type of legal structure that you wish to operate under. It is important to have a good understanding as each option has its own specific advantages and disadvantages relating to a number of areas including tax, liability and finance. Here we will go through each of the three most popular forms of business structures and detail the pros and cons.

Sole Trader

The easiest structure to get your head around, a sole trader is normally the most suitable business structure for small businesses. As a sole trader you solely own and control your business and are liable for it. In the UK the majority of businesses operate as sole traders. Some examples include butchers, barbers, photographers and plumbers.

3 critical mistakes when hiring staff for the first time

For most start-ups there comes a time where it becomes very clear that support is needed. It might be that you are losing work to competitors because you don’t have the time to take on new contracts, maybe you’ve identified an opportunity to diversify, or perhaps you want to improve on the service that you are providing to your existing customers by dedicating more time to them. Whether through hiring someone to answer telephones, work the books or a full on recruitment drive to fill a number of departments, developing a team of people to work alongside you can help push your business forward. However, if you are planning on hiring then it is important that you are aware of not only your legal obligations as an employer, but also some common pitfalls that catch out first-time employers.

Trademarks: FAQs

In previous articles we have explained the importance and methods of protecting a business’s brand by registering the brand as a trademark . This article covers some of the most frequently asked trademark questions.

To get protection for my brand, do I need to register it as a trademark?

It is possible to claim “common law” rights for a trading name within the UK. However, it can take a significant amount of time to earn the right, your rights will be unclear, someone else could register the name as a trademark and if that did it happen it would be very costly to get the rights back. So it is highly advisable that you register your brand as a trademark as it is the best way to ensure you have the exclusive legal right to use your brand.

The best way to protect intellectual property

All businesses should be aware of what intellectual property is and how to protect it.

A company’s branding, the name of products, inventions, product design or an item you have produced is classed as intellectual property and can be protected to prevent others from stealing or copying them. In previous articles we have highlighted the importance of registering a trademark to protect your brand and the reputation of your business. In this article we will discuss some of the best practices for protecting a business’ brand.

The benefits of successful brand protection

All businesses develop a substantial association between the company’s brand and the products or services it provides the consumer. Previously we have explained the process of registering a trademark in order to protect your brand and in this article we will focus on the benefits of successful brand protection.

Branding for your business should be carefully considered at an early stage and treated equally alongside the goals of the business. Creating a strong brand will enhance the growth of your business because your branding helps your clients or customers associate a reputation with your products or services. To ensure your developing brand and your businesses reputation is protected you should register your brand as a trademark.

4 great tips on how to register a trademark

Your brand could be the most important aspect to your business’s ongoing development and not registering a trademark to protect your brand from exploitation could be a big risk. Correctly securing a trademark will not only add value to your business and brand but will also allow your company to stand apart from your competitors.

A common misconception is that registering your businesses name with Companies House or owning the website address is sufficient, but these provide no form of trademark protection whatsoever. The only way to correctly protect your brand is to apply for a trademark with the Intellectual Property Office. However, before you apply for a trademark you should check that the name you want to protect can be registered with Companies House and that the internet domain name is available.

Top tips for new business investors

Investing in a business is a great way to increase the return on your savings but it is also risky and without the correct preparation you could lose all of the investment. You should also pay particular attention to how you can invest in businesses as there are many options and variables that could affect your decisions. If you are interested in business investing, the following tips should hopefully help you make decisive decisions.

Don’t gamble
It is vital that you research the business you are interested in to evaluate how successful the business is likely to be and whatever you do, do not make snap decisions. There are several aspects of a business that you should look into. The first should be the size of the market for the product or service the company is offering. You need to ensure that the market is big enough for the company to grow sufficiently to see a return on your investment. Your next challenge is to appraise the managers of the business to ensure the company has the right people to drive the business forward.

Investing through crowdfunding

When exploring how to invest in businesses you will discover that there are many methods available and you should not overlook the option of investing through a crowdfunding website. There are two types of crowdfunding. The most common campaign is where a business offers people a product (often at a discount) or gift in return for their money. The second form of crowdfunding is where businesses offer equity shares in return for their money.

Negotiating investment terms

Before you begin looking for an investment opportunity it’s important you know how to invest in a business. Once you are ready to make an investment in a business you must remember that the negotiation process is the start of a long-term business relationship so it’s crucial that the partnership gets off on the right foot.

Both parties should have the similar long term objectives and therefore the investment should reflect this and ideally it should be balanced. Previous experience within the industry you are investing in counts for a lot and most businesses will be looking for expertise as well as capital value.

How to find great businesses to invest in

It can be very risky investing your hard earned cash in a business but there are ways you can reduce the risk and increase the chance of finding the next big thing.

The very nature of investing means that you must be prepared to lose as well as gain money. However, carefully considering the qualities of a business and using your previous experience of the market sector can help you make an informed decision which should increase your chance of success.

How to get the best investment agreement

There are many methods of raising capital for your business but securing an investment can be very difficult. This sometimes leads to businesses rushing into deals because they are keen to get hold of any investment without first taking the time to step back and assess the implications of the investment agreement and, critically, understanding the terms. Therefore, from an early stage you should make sure that you fully understand the investment deal that is on offer, take legal advice from a specialist team and pay particular attention to the key terms.

One of the most fundamental terms will refer to the amount of equity shares the investor wants in return for their investment. Most investors will ask to have equity shares in the company they are investing in and this can be anything from 1% to 51% or more. 51% would be a majority share and would mean the investor has control of the business but most investors do not want this so would usually pitch their equity share return between 15% - 30%.  That would allow sufficient remaining equity to enable the business to obtain further investment at a later date.