Tag Archives: reasonable security under trade secrets law

Will Privacy Enforcement Actions Impact “Reasonable” Security Measures Needed to Protect Trade Secrets?

In widely-publicized, contested privacy cases last year, the FTC advocated in favor of a high baseline for information security measures.  Among the security practices attacked by the FTC as critical mistakes by companies suffering data breaches: Storing sensitive data in readable text; Any system that permits the use of easily-guessed passwords; Failure to use firewalls between internal systems, the corporate network and the Internet; Lack of adequate administrative security policies and procedures; Failure to adequately restrict third-party vendors from network and corporate servers; Failure to employ reasonable measures to detect and prevent unauthorized access; and, Failure to follow proper incident …