Separated employees

What’s the risk that an employee you pay a $100,000 separation payment will nonetheless steal trade secrets?

U.S. Says Man Sold Secrets to China,” Wall Street Journal, May 9, 2015 B4.  Man who received a $100,000 severance payment arrested by FBI and charged with selling hundreds of millions of dollars’ worth of trade secrets to a Chinese manufacturer.

What protections can you put in place to prevent trade secret theft?  If you’re the receiver, should your due diligence be more than an email asking whether the source has a confidentiality agreement?  What is the directors’ duty of care, both on the side of the owner of the secret and on the side of the receiver of the information?

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Filed under Access, Business Case, Controls, Duty of Care, Governance, Internal controls, Management, Oversight, Protect, Protect assets, Risk

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