
Success with 'from scratch' trade secrets program requires:
Project Nighthawk is a new classified program under development by an Australian defence contractor. The objective is to deliver capability for collaborative drone swarms with dual purpose applications in emergency response, search and rescue and general surveying.
Commercial deals are contemplated, so the need for IP protection is paramount but without compromising secrecy. The consequence is that patents are unsuitable except for projection of the broadest developments. Consequently, the IP strategy focuses predominantly upon trade secrets, as highlighted here.
First, Project Nighthawk is well placed to keep its technology confidential. It has robust IT and cybersecurity measures, and in the delivered product is building anti-reverse engineering measures in its hardware and on-board executive software. Proprietary technology can be kept confidential for the duration of its relevance. While the vision and capability of Project Nighthawk is impressive, of the many possible futures it is wildly uncertain what direction it will take with defence partners or commercial partners As conditions are dynamic, maintaining competitive advantage through secrecy makes sense and forms the foundation of strategic planning.
Second, define the broad categories of proprietary technology under development. This can develop over time but is likely stable. A taxonomy helps navigate and think about your IP. And gain clarity on the areas you should focus your efforts, and relative emphasis. It is also a great communication tool for discussions internally and externally. Here we organise around a taxonomical categories of what's important to the organisation:
Bear in mind trade secrets can also be non-technical, so perhaps you'll want to reserve category S for 'strategic', as briefly footnote at the end.
Third, you need working titles and reference codes. You can think of the reference codes as SKUs for your trade secrets, and the working titles are a helpful mental cue, an aide-mémoire. These are the handles for individual trade secrets that fit within the broader taxonomy above. Personally I just like the ergonomics of adopting a four-letter code to reflect a working title. This works well for day-to-day internal comms with the engineering teams. You can save Project Nighthawk for the press releases. And map bundles of different trade secrets to different strategic initiatives. A sample of trade secrets by a working title and reference code:
Fourth, the next fill-in is an abstract or short description that gives a few more details but does not reveal the substance of the trade secret in full. Basically, a statement of the perimeter of the trade secret, indicating domain, application, capability. Something that can be shared with trusted and contracted parties in certain circumstances. It also comes in handy navigating the trade secrets registry. So, just looking at the first trade secret HAWK-TS-C101-DWCP this might be:
Finally, the fuller technical specification of how HAWK-TS-C101-DWCP is implemented: the details required to actually implement and practice the trade secret. This speaks to the need to document trade secrets with sufficient particularity. Particularity in trade secrets means sufficient specificity and detail to distinguish the trade secret from general knowledge or vague concepts. You cannot claim retrospective trade secrets, in other words. Particularity dovetails with the related concept of reasonable measures needed to protect trade secrets, which we'll meet again later. A full specification should include all the necessary diagrams and description that give all the practical working directions to implement the trade secret. This coincides with the detail that is required of a conventional Invention Disclosure prepared for a prospective patent application. This is relevant to note, as trade secrets and patents ideally work together, as complementary business tools.
Trade secrets may be all about information but it also fundamentally about humans. Who. We have to track down to individuals as it is ultimately individuals who keep or spill secrets. Ideally a trade secrets registry should be recording:
Tracking attribution, access and authorisation is multi-faceted solution. While it can look like largely an IT solution as this is the underlying enabling technology, it is enabled by broader IT policies and practices, and compliance with IP and legal. And ultimately people make it all happen, so throw in HR as well.
This is the less exciting aspect of maintaining trade secrets, but a very critical one. What you need to have in mind is the foundational importance of all your contractual partnerships such as employment agreements, NDAs, partnership agreements. Backed up with internal policies that bulwark these formal contractual arrangements. Day-to-day you have contractual arrangements and implemented policies reinforced by daily working procedures. You cannot undermine the high-level intent with sloppy and counterproductive work practices that suggest the contracts and policies do not matter. Because if ever tested, they will not matter. Worst case is you can undo the discipline and structure you have created. Some thoughtful guardrails and regular refreshers maintains institutional disciplne.