Know-how refers to confidentially held data, which is in the form of formulae, unpatented inventions, designs, procedures, drawings, and methods. It also 
goes hand in hand with acquired experience and skills which give a firm a competitive advantage.
The inherent suitability of know-how entails the embedded legal protection on trade secrets. From the industrial property point of view, know-how is mainly a component of the technological environments, trademarks and copyright, as well as an economic asset.
Worldwide businesses claim to have the most genuine and security guaranteed know-how. But that’s not the case, only a few consider taking suitable and vital measures to safeguard know-how efficiently, as well as maximise its returns or value. There is no legal patent or document which guarantees appropriation of know-how exclusively.
Software, algorithms, and data are fundamental assets of the digital models. All these rely on different know-how, which needs to be protected to avoid risks. However, many firms have lagged behind in know how protection and safeguarding confidential business information. Firms that fail to embrace appropriate know how protection face a series of legal consequences, such as trade secrets theft, and in a grand jury, they might not get protection.
To attain high-level and sustainable security, know-how should not be ignored. For instance, protection of trade secrets is increasingly becoming difficult in the globalised digital economy. Risks and threats can emerge from different sides, such as employees, business partners, or hackers. Therefore, firms require proactive, counteractive measures to avoid losing know-how.
Types of Know How Protection Measures
Here are some measure types of know how protection:
Organisational Measures
It is essential to set and implement adequate protection, as well as confidential restrictions on the know-how secrets and essential business data of a firm, since it may be a trade secret. To avoid loss of trade secret or legal rights, there is a great need for protecting them.
The precautions include:
- Granting access to those in need of information
- Setting up strict precautions governing it to avoid liabilities
- Ensuring there is a developed protection policy
- The employees should adhere to healthy commercial practices and safeguard the company’s interests
- Putting secret trade materials away after working hours and restricting the public to its access
- A high level of computer security should be maintained
- The contracts reviewed should protect trade secrets
- Protection of trade secrets by storing confidential files physically away from some data
- Going through and rectifying training procedures
- Knowing the weight of the trade secret
- Setting up a protection policy to govern the company
- The efficiency of identifying trade secrets should be reliable
- IT security and contractual or legal measures
Know how protection measures involve various protection levels about the people (holders), enterprises or areas to be protected, telecommunications and communication including electronic data, and accessibility to most sensitive information.
The importance of useful know how protection is capturing significant know-how efficiently within the firm. Also, it involves categorising the relevant information, as well as the bearers of the trade secrets.
Contractual or legal measures, including the contracts binding the firm with the employees, terms and conditions or business partners forms the basis of the digital business models. Nevertheless, adequate IT security provides a guarantee that know-how it is protected.
A strategic protection plan requires safeguarding of firms or individual know-how secrets. First, identify the know-how and make it formal to safeguard it. Know-how is an asset, although an intangible one; thus, there is a need to formalize it and have a specific date of creation. This help to show the proof of ownership.
Know-how, just like any asset, is transferable. The transfer of know-how is associated with two types of agreements, namely the disclosure and non-disclosure agreements. The need for a disclosure agreement is to ensure the licensee company knows the unique, or specific content of know-how which the licensor company possesses. After a license agreement, the parties involved are accustomed to the non-disclosure agreement. The third-party should not get any information on the trade secrets to ensure know how protection.
