Companies are investing huge amount of money in research and development for creation of intellectual properties may be in the form of new technology, drug discovery, trade secret etc. The major concern for the companies

Intellectual Property Rights are the key elements needed to maintain a competitive edge in the market in today's dynamic and competitive business environment. Intellectual property is undoubtedly a business asset and an integral part of the business process. Effective acquisition, management and protection of intellectual property can mean the difference between success and failure in businesses today. Thus, it is important that companies take appropriate steps to protect such a valuable asset so as to get the possible commercial results from its ownership. The various statutes that have been enacted provide an adequate mechanism of protection to intellectual property rights. In the case of Patents, a patent can provide an inventor/corporates with a 20-year government approved monopoly and once his 20 years of protection gets exhausted, the invention can be freely accessed and commercially exploited for the larger good of society by any player who is capable of doing it. However, it is equally true that some ideas cannot be patented, and indeed, some innovators do not want to patent their ideas / inventions, as for instance, trade secret or confidential information. Today more than ever, intellectual property also includes confidential business information, trade secrets, and know-how and key business relationships. If a trade secret is really kept a secret, the monopoly on an idea or product may never end. But once the jinny is out of the bottle, you won't get it back in, if it is lost it is lost forever and the companies are unlikely to extract sufficient damages from whoever breaches their confidentiality. Trade secrets need to be prevented from being disclosed. Though it is difficult indeed, but not an impossible task. The text book examples that included the recipe for Coca-Cola and the formulation of the alcoholic beverage Chartreuse, which was only known by two monks. The need to protect these vital assets is more critical than ever. Knowledge has become the key strategic differentiator. If it is valuable to the company, it is valuable to its competitors as well. Most sophisticated business enterprises (whether small, medium, or large) recognize the need to protect this vital Intellectual Property. But little real attention is paid to protecting or securing these less formal types of intellectual property. It has been observed that many companies surprisingly are oblivious to the fact that these vital intellectual property assets are walking out their front door on a daily, weekly or monthly basis, and heading across the street to rival competitors. It is important for them to recognize this reality and take steps like creating awareness of the need to protect the company's most valuable strategic assets without which no effective risk management program can be initiated; take stock of company's core intellectual property. It is important for a company to know that what differentiates them from their rivals and gives them a strategic advantage over them in the market place. There are two principal sources of leakage of trade secrets or confidential information to competitors or other third parties, that is, disclosure and departure. Disclosure - Trade Secrets can be leaked advertently or inadvertently to the competitors or third parties through careless or deliberate disclosure by company's representatives. For example, when a sales representative or accounts manager meets with a potential supply chain provides about pooling resources to go after a new market or business opportunity. During the meeting, proprietary and confidential information are susceptible to be disclosed. The business purpose of the disclosure or exchange of information might be quite legitimate, but the legal effect of disclosing confidential information without the benefit of a confidentiality or non-disclosure agreement could be disastrous. Corporate must make it both a corporate policy and business practice not to engage in commercial negotiations with third parties (whether direct competitors or not) without first ensuring that they have a signed Confidentiality or Non-Disclosure Agreement in place. Departure - The other source of leakage of confidential business information is the exit of Executive(s) or key employees from the Organization. After their employment ceases, the Employee retains the right to use any general skill, experience and knowledge that he has acquired in the course of performing his normal duties, in order that he can continue to earn a living. This has to be balanced against the employer's right to protect its confidential information from any disclosure by such an employee. If the employee retains any confidential information pertaining to the employer or its business, then such an employee is not entitled to use or convey that information without the employer's authority / consent.